Circular Economy Act in Public Procurement 2026

Definition: The Circular Economy Act (Kreislaufwirtschaftsgesetz – KrWG) is the central German statute on waste prevention and the conservation of resources; in public procurement law, it takes effect as the legal framework for ecologically sustainable public procurement and as a basis for taking circular-economy goals into account in tendering procedures.

Last updated: January 2026 · Legal basis: KrWG (BGBl. I 2012, p. 212, last amended 2023); § 97 (3) GWB; National Circular Economy Strategy 2024

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KrWG and public procurement

The Circular Economy Act (KrWG) obliges public bodies, in the performance of their tasks, to contribute to the promotion of the circular economy; public procurement is a central instrument in this regard. § 45 KrWG sets out an express obligation for federal authorities, when procuring products and using services, to give preference to products that particularly contribute to reducing the generation of waste or to promoting recovery and environmentally sound disposal of waste.

Circular-economy principles in procurement practice

The principle of the circular economy (Reduce, Reuse, Recycle) translates into concrete requirements for products and services that contracting authorities can include in their specifications and award criteria.

Possible circular-economy requirements in procurement procedures:

• Minimum recycled content: Evidence that the product contains a certain proportion of recycled materials.
• Take-back obligation: Obligation of the contractor to take back used equipment or packaging.
• Durability and repairability: Requirements regarding the lifespan and ease of maintenance of products (e.g. furniture, IT hardware).
• Ecodesign requirements: Reference to the requirements of the EU Ecodesign Regulation (in force from 2024).
• Packaging minimisation: Requirements for environmentally friendly or reusable packaging.

National Circular Economy Strategy 2024

The German government's National Circular Economy Strategy (NKWS) 2024 sets concrete targets for public procurement and provides that contracting authorities systematically integrate circular-economy criteria into their procurement processes. The NKWS builds on the EU Green Deal and the EU Circular Economy Action Plan and provides binding procurement quotas for certain product categories.

Link with EU public procurement law

Art. 67 Directive 2014/24/EU expressly allows contracting authorities to include life-cycle costing approaches and environmental aspects in their award criteria – this includes circular-economy criteria. § 97 (3) GWB requires contracting authorities in Germany to take economic, social and environmental aspects into account where appropriate to the subject matter of the contract.

FAQ

Can a contracting authority require products with minimum recycled content as a mandatory criterion? Yes, where the requirement is contract-related, proportionate and non-discriminatory; the contracting authority must define the requirement clearly in the bill of quantities and require verifiable evidence.

Which eco-labels can be used for circular-economy requirements? Eco-labels such as the Blue Angel, the EU Ecolabel or the Cradle-to-Cradle certification standard may be accepted as proof, provided equivalent evidence is also admitted.

Is preferring circular-economy products compatible with the principle of competition? Yes, where the requirements are objectively justified, proportionate and equally achievable for all bidders without discrimination.

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Last updated: January 2026 All information provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.