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Harnessing PublicProcurement for the GreenTransitionGOOD PRACTICES IN OECD COUNTRIES This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty overany territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use ofsuch data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements inthe West Bank under the terms of international law.Please cite this publication as:OECD (2024),Harnessing Public Procurement for the Green Transition: Good Practices in OECD Countries, OECD PublicGovernance Reviews, OECD Publishing, Paris, https://doi.org/10.1787/e551f448-en.ISBN 978-92-64-84917-4 (print)ISBN 978-92-64-87341-4 (PDF)ISBN 978-92-64-49649-1 (HTML)ISBN 978-92-64-79523-5 (epub)OECD Public Governance ReviewsISSN 2219-0406 (print)ISSN 2219-0414 (online)Photo credits:Cover @Bjorn Beheydt/Shutterstock.comCorrigenda to OECD publications may be found on line at: www.oecd.org/about/publishing/corrigenda.htm.© OECD 2024The use of this work, whether digital or print, is governed by the Terms and Conditions to be found at https://www.oecd.org/termsandconditions. HARNESSING PUBLIC PROCUREMENT FOR THE GREEN TRANSITION © OECD 2024ForewordGiven escalatingenvironmental challenges, the imperative for governments to embrace sustainablepractices has never been more pressing. The urgency of curbing climate change and preservingbiodiversity requires concerted efforts across all sectors and stakeholders. Governments play a pivotal rolein steering policies and enacting change for a greener future, both domestically and internationally.The “Governing Green’’ pillar of the OECD Reinforcing Democracy Initiative demonstrates how globalchallenges such as climate change offer opportunities for governments to revisit and upgrade publicgovernance tools, including public procurement, to lead by example and drive change. Governmentprocurement is one tool through which the public sector can directly influence the greentransition. Withprocurement making up around 13%, on average, of GDP in OECD countries, governments wieldconsiderable power in various sectors. Outcomes-based procurement strategies can significantly driveprogress towards greener societies and economies.The OECD 2015 Recommendation on Public Procurement calls upon countries to foster a balancedapproach to the use of procurement to achieve economy, efficiency, and strategic policy objectives. Greenpublic procurement (GPP), i.e., public purchasing of products and services that are less environmentallydamaging, is increasingly used by countries to achieve such policy objectives in the area of environmentalprotection. In 2015, the OECD carried out a first stocktaking exercise to look at GPP uptake in OECD andG20 countries. This exercise identified some key obstacles to successful implementation of GPP, includingthe perception that green products and services are more expensive than conventional ones, publicofficials’ lack of expertise in integrating environmental standards in the procurement process, and theabsence of monitoring mechanisms to evaluate whether GPP achieves its goals.Under the leadership of the Working Party of the Leading Practitioners on Public Procurement (LPP), theOECD conducted acomprehensive survey on green public procurement (GPP) in 2022 to betterunderstand how public procurement is used to generate environmental benefits. In total, 38 countriesreplied to the GPP Survey, 34 OECD countries and 4 accession candidate countries(Brazil, Bulgaria,Romania and Peru). The Survey closed in November 2022; therefore, any GPP developments after thisdate is not included in the main report but appear in the country factsheets in Annex A.This Report builds on the results of the Survey,as well as additional desk research and bilateral exchangeswith country representatives. It identifies good practices regarding green procurement strategies but alsopersistent challenges and provides recommendations to help governments unlock the potential of publicprocurement towards to support the green transition.The report strives to empower governments and stakeholders with the insights needed to navigate thecomplexities of sustainable public procurement and its impact.It was approved by the Public Governance Committee on 19 June 2024 and prepared for publication bythe Secretariat. HARNESSING PUBLIC PROCUREMENT FOR THE GREEN TRANSITION ©OECD 2024AcknowledgementsThis report was prepared by the OECD Public Governance Directorate (GOV) under the leadership of ElsaPilichowski, Director, and the guidance of Edwin Lau, Head of the Infrastructure and Public ProcurementDivision in GOV. The report was co-ordinated by Matthieu Cahen and Erika Bozzay, Senior Policy Advisersin the Infrastructure and Public Procurement Divisi