Offsetting in Procurement Law 2026

Offsetting in procurement law: the compensation of emissions or disadvantages by certified measures, also offsetting in the climate context of public procurement.

Definition: In a procurement-law context, offsetting denotes either the compensation of greenhouse gas emissions through certified climate protection projects (CO₂ offsetting) or, more generally, the balancing out of disadvantages that arise from a procurement measure, for example the offsetting of additional costs against quality gains in bid evaluation.

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

What is offsetting in procurement law?

The term offsetting is used in two different senses in procurement law: as CO₂ offsetting in the context of sustainable procurement, and as a general principle of balancing out disadvantages.

CO₂ offsetting in procurement

In the area of climate-neutral procurement, offsetting denotes the compensation of unavoidable greenhouse gas emissions through certified climate protection projects. Contracting authorities may require bidders to demonstrate how they offset the residual emissions of their products or services through recognised compensation measures (e.g. afforestation projects, investments in renewable energy).

Offsetting in the context of bid evaluation

When bids are evaluated under the best-bidder principle, qualitative advantages of a bid may offset its disadvantages on price. A bid with an outstanding quality profile may, despite a higher price, be evaluated as the most economically advantageous bid, where the evaluation model so provides.

Limits of offsetting

Offsetting has clear limits in procurement law: deficiencies in respect of mandatory requirements cannot be offset by other advantages.

Examples of deficiencies that cannot be offset:

Formal grounds for exclusion (e.g. late submission of a bid)
Mandatory deficiencies of eligibility
Breaches of minimum requirements in the specifications

Related terms

FAQ

May a contracting authority require CO₂ offsetting as a minimum requirement? Yes, where the market is able to deliver this and the requirement is proportionate. Contracting authorities should refer to recognised offsetting standards (e.g. Gold Standard, Verified Carbon Standard).

Can additional costs of a climate-neutral bid be offset by environmental advantages? Yes. Where life-cycle costs and external environmental costs are included in the evaluation of bids, additional costs can be offset against environmental costs avoided (e.g. CO₂ levies avoided).

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