Environmental Protection in Public Procurement 2026 – Sustainable Public Procurement

Definition: Environmental protection in public procurement law refers to the legally recognised consideration of environmental and climate protection objectives throughout the procurement process, from defining the need through to technical requirements and award criteria and contract performance conditions.

Last updated: January 2026 · Legal status: Art. 18(2), Art. 42, 43, 67, 68, 70 Directive 2014/24/EU, §§ 97(3), 127, 128 GWB, § 57 BVergG 2018

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Environmental protection as an objective of procurement law

Public procurement law has evolved from a purely price-oriented procurement system into an instrument of strategic procurement policy, in which environmental protection plays a central role. Art. 18(2) of Directive 2014/24/EU obliges Member States to take appropriate measures to ensure that, in performing public contracts, economic operators comply with applicable environmental obligations. § 97(3) GWB expressly anchors the consideration of quality, innovation, social and environmental aspects as procurement objectives.

The public sector is therefore not a neutral market participant but plays an active role in promoting environmentally friendly products, processes and undertakings.

Levers at every stage of the procedure

Needs analysis and subject matter of the contract

Already at the stage of defining the procurement need, the contracting authority decides whether and how environmental aspects are taken into account. A consistently ecological needs analysis first asks whether the need has to be met by procurement at all or whether alternatives (repair, sharing, reduced consumption) might apply.

Technical specifications and minimum requirements

Mandatory environmental minimum requirements can be set in the technical specifications, which all tenders must meet (e.g. energy efficiency class, pollutant limits, recycling quota, CO₂ emission limits). Tenderers that fail to meet them are excluded.

Suitability criteria

Contracting authorities may require tenderers to demonstrate a certified environmental management system (e.g. EMAS – Eco-Management and Audit Scheme, ISO 14001), provided this is objectively justified in relation to the subject matter of the contract. Equivalent measures without formal certification must be accepted.

Award criteria

Environmental characteristics may be taken into account as a qualitative award criterion in the evaluation of tenders, e.g. lower CO₂ emissions, durability, repairability, use of renewable energy in production. These criteria must be linked to the subject matter of the contract.

Life-cycle costs

Life-cycle costing makes it possible to monetise environmental (external) costs in the price. This applies in particular to costs arising from greenhouse gas emissions, which can be monetised using standardised methods. Tenders with a smaller ecological footprint thereby gain a calculable advantage.

Contract performance conditions

Environmental requirements may be imposed as contract performance conditions, e.g. low-emission delivery vehicles, waste avoidance on the construction site, use of regional or sustainably certified materials.

Instruments and evidence

Recognised instruments for embedding environmental protection in the procurement procedure include:

• Eco-labels: EU Ecolabel, Blauer Engel, Austrian Ecolabel
• Certifications: EMAS, ISO 14001, FSC/PEFC (timber products), Fairtrade
• Product databases: EPEAT (IT equipment), EU energy label
• Guidance documents: Guidelines of the Federal Environment Agency, guidance from BBG Austria

Limits and risks

Environmental requirements must not be misused to favour particular national or regional suppliers. The principle of non-discrimination applies to environmental criteria too. Environmental requirements that are too narrowly drawn or cannot be verified may render the procedure unlawful.

FAQ

Must the contracting authority always procure the most environmentally friendly product? No. Procurement law gives discretion, but does not automatically oblige procurement of the most environmentally friendly product. Some laws (e.g. on energy-saving office equipment) do, however, set concrete minimum requirements.

May a contracting authority use environmental protection as the sole award criterion? No. Price must be taken into account in some form. Environmental aspects can, however, feed indirectly into the price comparison via life-cycle costing.

What is the difference between environmental protection as a contract performance condition and as an award criterion? As an award criterion the environmental characteristic differentiates between tenders and influences the award decision. As a contract performance condition the requirement must be met by all contractors as a binding obligation, without different degrees of fulfilment being evaluated.

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