Climate-Neutral in Procurement Law 2026

Climate-neutral in procurement law: requirement that procured services cause no net greenhouse gas emissions, as an award criterion or contract term.

Definition: In a procurement-law context, climate neutrality means that the service, product or works to be procured, viewed over its entire life cycle, causes no positive net greenhouse gas emissions, because any unavoidable residual emissions are offset by certified compensation measures.

Last updated: January 2026 · Legal status: Directive 2014/24/EU Articles 67–68; EU Taxonomy Regulation 2020/852; GWB § 97 para. 3; BVergG 2018 § 20 para. 5

What does climate neutrality mean in public procurement?

Climate-neutral procurement goes beyond climate-friendly procurement: while climate-friendly products reduce emissions, climate neutrality aims at the full offsetting of all residual emissions. Public contracting authorities that pursue climate-neutral procurement require bidders to ensure that their products, services or works cause no net greenhouse gas emissions – either through low-emission production or through recognised offsetting measures (e.g. CO₂ certificates, afforestation).

Legal framework

EU procurement law expressly allows climate neutrality criteria to be taken into account but – aside from sector-specific exceptions – does not generally require them.

The most important legal bases are:

Article 67 of Directive 2014/24/EU: award criteria may include environmental aspects, including greenhouse gas footprint and climate protection
Article 68 of Directive 2014/24/EU: life-cycle costs may include external environmental costs (including CO₂ costs)
EU Taxonomy Regulation (2020/852): defines which economic activities are regarded as environmentally sustainable – relevant as a reference framework for climate neutrality requirements

Implementation in procurement procedures

Climate neutrality requirements can be brought into procurement procedures in various ways.

As technical specification

Contracting authorities can lay down climate-neutral production as a minimum requirement in the specifications (e.g. "electricity exclusively from renewable sources", "climate-neutral supply chain certified to ISO 14064").

As an award criterion

The climate footprint of a bid can be included as an evaluation criterion alongside price. Bidders with a better climate profile receive more evaluation points.

As a condition of contract performance

Contracting authorities can stipulate in the contract that the contractor must demonstrate climate neutrality during the performance of the service.

Challenges

Taking climate neutrality into account in procurement is associated with practical challenges, which have so far limited its uptake in practice:

Measurability: the calculation of CO₂ footprints requires standardised methodologies; the lack of harmonisation makes comparisons difficult
Risk of greenwashing: unsubstantiated claims of climate neutrality are worthless; contracting authorities must require recognised certifications
Market maturity: in many areas of services, the supply of climate-neutral products is not yet sufficient
Additional costs: climate-neutral products and services are often more expensive than conventional alternatives

Related terms

FAQ

May a contracting authority require climate neutrality as a mandatory criterion? Yes, where the market is in a position to deliver and the requirement is proportionate and non-discriminatory. In areas where the supply of climate-neutral products is not yet sufficient, a mandatory criterion might be regarded as distorting competition.

What is the difference between "climate-neutral" and "net zero"? The two terms describe the same thing: net-zero greenhouse gas emissions mean that emissions are either fully avoided or fully offset by sinks or compensation.

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