Environmentally Friendly Products in Public Procurement 2026 – Sustainable Procurement

Definition: Environmentally friendly products in the sense of public procurement law are supplies or services produced or delivered in accordance with recognised environmental standards, where the contracting authority takes environmental characteristics into account as award criteria, technical specifications or contract performance conditions.

Last updated: January 2026 · Legal status: Art. 42, 43, 67, 70 Directive 2014/24/EU, § 67 VgV, National Programme for Sustainable Procurement (Germany), Action Plan for Sustainable Public Procurement (Austria)

---

Environmentally friendly products in public procurement

Taking environmental requirements into account in public procurement is not only possible but, as part of strategic procurement objectives, politically desired and increasingly anchored in law. Together, public bodies in Germany and Austria spend several hundred billion euros a year on goods and services. Through targeted demand for environmentally friendly products, the public sector can exert considerable pressure on markets and contribute to the transformation towards a more sustainable economy.

Public procurement law offers several entry points: environmental requirements can be integrated into the procedure as technical specifications, as suitability criteria, as award criteria or as contract performance conditions.

Legal instruments

Technical specifications

The contracting authority may include environmental characteristics as mandatory minimum requirements in the description of the contract. Examples are a minimum share of recycled materials, energy efficiency requirements (e.g. EU energy label class A), absence of pollutants or biodegradability. In doing so, the authority must always proceed in a non-discriminatory manner and accept equivalent evidence.

Eco-labels and quality labels

Contracting authorities may refer to eco-labels such as the EU Ecolabel, the Blauer Engel (Germany) or the Austrian Ecolabel where the label requirements are linked to the subject matter of the contract, are verifiable and demonstrable, and are not discriminatory (Art. 43 Directive 2014/24/EU). Tenderers that do not hold the specific label must be permitted to submit alternative equivalent evidence.

Award criteria

Environmental characteristics may be included as qualitative award criteria in the evaluation of tenders. This makes it possible to prefer tenders with better environmental characteristics (e.g. lower CO₂ footprint, greater durability) without entirely excluding other tenderers.

Life-cycle costs

Life-cycle costing (LCC) allows the contracting authority to take into account not only the acquisition price, but also operating costs, maintenance costs and disposal costs in the evaluation. This can enable products that appear more expensive at first glance, but which are more durable and energy-efficient, to win the contract (Art. 68 Directive 2014/24/EU, § 59 VgV).

Contract performance conditions

As a contract performance condition, the contracting authority may require certain environmental standards to be observed during performance of the contract, e.g. delivery with low-emission vehicles, environmentally sound disposal of packaging, or the use of renewable energy in carrying out the contract.

National programmes and guidance

In Germany the Competence Centre for Innovative Procurement (KOINNO) and the Federal Environment Agency support contracting authorities with guidance on environmentally friendly procurement. In Austria, the Federal Ministry for Climate Action coordinates sustainable public procurement (naBe action plan).

FAQ

May a contracting authority require only products bearing a specific eco-label? No. It must always accept equivalent evidence from other suppliers, even if they do not hold the specific label.

Can environmental requirements be set as exclusion criteria (minimum requirements)? Yes, as technical minimum requirements. Tenderers that fail to meet them are excluded.

How are life-cycle costs calculated in the evaluation? The contracting authority defines the calculation method in advance (e.g. energy costs over the useful life, CO₂ price per tonne). Tenderers provide the necessary data in their tender.

Is taking environmental criteria into account legally compulsory? In Germany and Austria there are increasing statutory obligations for certain product groups (e.g. energy-related products under Directive 2012/27/EU). Beyond this, there is largely discretion.

---

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