At RIVCircular, we see public procurement as a powerful driver of sustainability, innovation, and the circular economy. However, unlocking its full potential requires overcoming a range of challenges that demand coordinated action and greater awareness among all stakeholders.
According to the Communication Public Procurement for a Better Environment (COM-2008-400), Green Public Procurement (GPP) is the process by which public authorities acquire goods, services, and works with a reduced environmental impact throughout their life cycle, compared to alternatives serving the same primary function. This approach ensures that public spending supports environmental goals while promoting efficiency and long-term value.
What is Public Procurement of Innovation (PPI)?
The European Union defines innovation procurement as the process of encouraging and acquiring new solutions to meet emerging needs. This involves the development of innovative products or services through research and development contracts, the procurement of solutions that are not yet available or do not exist on the market, and the purchase of innovative solutions that already exist but are not yet widely accessible.
Challenges of Green Public Procurement and Innovation
One of the main challenges of sustainable procurement is ensuring the training and upskilling of all stakeholders, as it requires specialized knowledge of environmental criteria, innovation, and product life cycle analysis. Another critical hurdle is engaging companies and suppliers so that they adapt their production processes to meet environmental standards, often requiring significant upfront investments.
There is also a persistent misconception that applying sustainability criteria necessarily increases costs, when in reality, looking at the entire life cycle often reveals substantial savings and improved efficiency. Finally, measuring non-economic benefits—such as improved public health or a reduced carbon footprint—remains a complex yet essential task.
In terms of innovation procurement, an OECD survey (2017) revealed that the main barriers are linked to risk aversion, limited management and coordination capacity, insufficient political support, resistance to change, and challenges in developing adequate measurement systems and IT tools.
At RIVCircular, we work to address these challenges by promoting innovation and green initiatives within regional ecosystems, fostering discussions on critical issues, and raising awareness to provide tools and strategies for more effective procurement.
Benefits of Green Public Procurement and Innovation
Despite the challenges, the benefits of GPP and PPI are both strategic and far-reaching. Sustainable procurement contributes to economic savings and significantly reduces negative impacts on the environment and public health. It also boosts local innovation, encouraging suppliers and businesses to develop sustainable products and services, which in turn creates competitive advantages and drives a stronger transition toward circular and resilient economies.
Green public procurement can act as a catalyst for innovation by providing industry with incentives to develop environmentally friendly solutions. It can also generate considerable financial savings for public buyers by shifting focus beyond immediate purchase prices and toward the full life cycle cost of products and services. For example, choosing energy-efficient or water-saving technologies can lead to significant reductions in utility bills.
Public buyers play a crucial role in reducing greenhouse gas emissions and advancing the transition toward a circular economy. Green procurement is a key tool to achieve these goals.
The Potential of Public Procurement
According to EU data, public procurement represents over 14% of the EU’s GDP, making it a powerful market lever. It has the potential to:
- Shape and create new markets.
- Accelerate the adoption of innovative products, services, and works.
- Enhance the quality of public services
- Support small and medium-sized enterprises (SMEs) in accessing new opportunities.
- Drive smart investment and generate positive impacts on mobility, health, education, and other vital sectors.
EU Resources and Support Platforms
The European Union provides a range of tools, platforms, and guidelines to support Green Public Procurement (GPP) and Public Procurement of Innovation (PPI):
- Public Buyers Community – A collaborative platform to share best practices and stay informed about EU initiatives in sustainable procurement.
- Guidance on Innovation Procurement – Practical resources to help public authorities adopt innovative solutions in their procurement strategies.
- Green Public Procurement Helpdesk – Managed by ICLEI, this service provides expert support and answers to questions related to GPP implementation.