Green Procurement in Procurement Law

Definition: Green procurement (Green Public Procurement, GPP) is the strategy by which public contracting authorities integrate environmental considerations into the procurement process and purchase products, services and works that have less impact on the environment than comparable alternatives; the legal basis is, in particular, Art. 67(2)(a) of Directive 2014/24/EU.

Last updated: January 2026 · Legal basis: Art. 67(2)(a), Art. 43, Art. 68 Directive 2014/24/EU; BVergG 2018; GWB § 97(3); § 58 VgV

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What is green procurement?

Green procurement – referred to in the European context as Green Public Procurement (GPP) – is the systematic incorporation of environmental requirements into public procurement projects with the aim of promoting more environmentally friendly products, services and works.

Public contracting authorities in the EU spend significant amounts each year on goods, works and services. By deliberately taking environmental considerations into account, the public sector can exert considerable leverage on production processes, choice of materials and life-cycle emissions. GPP is not mandatory in principle but a voluntary strategy – although individual sector-specific rules such as the Clean Vehicles Directive (Directive 2019/1161/EU) make environmental criteria binding for certain vehicle purchases.

Environmental considerations can be incorporated at various stages of the procurement procedure:

• Technical specifications: Setting environmental standards as minimum requirements (e.g. energy efficiency classes, pollutant limits).
• Selection criteria: Evidence of an environmental management system (e.g. EMAS, ISO 14001) as proof of the bidder's capability.
• Award criteria: Taking environmental characteristics into account in tender evaluation (Art. 67(2)(a) Directive 2014/24/EU).
• Performance conditions: Environmental obligations for contract performance (e.g. use of low-emission vehicles, waste avoidance).

Significance and function

Green procurement is an essential instrument of the public sector for achieving environmental and climate protection goals while promoting innovation in environmentally friendly products and services.

Life-cycle costs: Art. 68 of Directive 2014/24/EU allows life-cycle costs to be used as the basis for tender evaluation. This includes not only the purchase price but also operating costs, maintenance costs, disposal costs and external environmental costs (CO₂ emissions, where monetisable). The life-cycle approach enables an economically and ecologically holistic assessment.

EU GPP criteria: The European Commission has developed voluntary GPP criteria for many product groups (e.g. office equipment, cleaning products, food, building materials) which contracting authorities can use as a guide. These criteria are publicly available on the Commission's GPP website.

Labels: Art. 43 Directive 2014/24/EU governs the admissibility of labels as proof of environmental or social characteristics. Contracting authorities may require the submission of certain labels but must accept equivalent evidence (see Labels).

Austria: The Federal Procurement Agency (BBG) coordinates sustainable federal procurement and provides model tenders and guidance on green procurement. The Austrian strategy for sustainable public procurement is set out in the National Action Plan on Sustainable Public Procurement (NAP).

Germany: The Federal Environment Agency (UBA) supports public contracting authorities in environmentally friendly procurement via the "Competence Centre for Sustainable Procurement" (KNB) portal and sector-specific guides. § 97(3) GWB and § 58 VgV expressly provide for the consideration of environmental and social aspects in the award decision.

Legal basis

The legal foundations of green procurement are primarily anchored at EU level in Directive 2014/24/EU; supplementary sector-specific provisions and national implementations broaden the scope of application.

• EU: Art. 67(2)(a) (environmental aspects as award criterion), Art. 43 (labels), Art. 68 (life-cycle costs) Directive 2014/24/EU; Directive 2019/1161/EU (Clean Vehicles Directive)
• Austria: BVergG 2018, § 91 (award criteria), § 120 (life-cycle costs); BBG guidelines
• Germany: GWB § 97(3); VgV § 58 (award criteria), § 59 (life-cycle costs); UVgO § 43; KNB

Related terms

• Labels
• Award criteria
• Procurement procedure
• Principle of equal treatment
• Product neutrality
• Tender
• Bill of quantities
• Direct award

FAQ

Is green procurement mandatory for public contracting authorities? In principle, GPP is voluntary. However, there are exceptions: the Clean Vehicles Directive (Directive 2019/1161/EU) prescribes minimum quotas of clean and zero-emission vehicles for the procurement of certain vehicles. In addition, national rules or internal procurement guidelines can make environmental requirements binding.

May contracting authorities require exclusively products bearing a particular environmental label? No. Art. 43 Directive 2014/24/EU permits reference to labels but obliges contracting authorities to also accept equivalent labels or other evidence. An exclusive requirement for a specific label would be contrary to procurement law.

What are external costs in the sense of the life-cycle costing approach? External costs are environmental costs not directly included in the price of the product or service but borne by society – for example through CO₂ emissions, air pollution or water consumption. Art. 68 Directive 2014/24/EU permits them to be taken into account provided that their monetary value can be objectively determined and applied in a non-discriminatory way.

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