Sustainable finance
Sustainable Public Procurement
Definition
Sustainable public procurement is a process whereby public authorities meet their needs for goods, services and works in a way that achieves value for money on a life-cycle basis, generating benefits for the organisation, society and the economy while minimising environmental damage. Public procurement typically represents 10–15% of GDP, making the state's purchasing choices a market-shaping force.
References
This reference provides supporting context for how “Sustainable Public Procurement” is defined and used.
Source imported for editorial provenance.
Overview
How it is used
The concept is implemented through national procurement law, EU directives permitting environmental and social award criteria, SDG target 12. 7, and city networks' collective procurement of clean vehicles and buildings.
Why it matters
Procurement is the state's most direct market instrument; greening it converts public budgets into recurring, large-scale demand for sustainable goods and services.