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Strategic Public ProcurementandProfessionalisation InitiativesinEstonia Diagnostic Report OECD Public Governance Reviews Strategic PublicProcurementand ProfessionalisationInitiatives in Estonia DIAGNOSTIC REPORT This work was approved and declassified by the Public Governance Committee on 20/08/2025. This document was produced with the financial assistance of the European Union. The views expressed herein can inno way be taken to reflect the official opinion of the European Union. 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. ISBN 978-92-64-82580-2 (print)ISBN 978-92-64-66143-1 (PDF)ISBN 978-92-64-79764-2 (HTML) OECD Public Governance ReviewsISSN 2219-0406 (print)ISSN 2219-0414 (online) Photo credits:Cover © Sean Pavone/Shutterstock.com. Corrigenda to OECD publications may be found at: https://www.oecd.org/en/publications/support/corrigenda.html.© OECD 2025 Attribution 4.0 International (CC BY 4.0) This work is made available under the Creative Commons Attribution 4.0 International licence. By using this work, you accept to be bound by the terms of this licence(https://creativecommons.org/licenses/by/4.0/).Attribution– you must cite the work.Translations– you must cite the original work, identify changes to the original and add the following text:In the event of any discrepancy between the original work and thetranslation, only the text of the original work should be considered valid.Adaptations– you must cite the original work and add the following text:This is an adaptation of an original work by the OECD. The opinions expressed and arguments employed inthis adaptation should not be reported as representing the official views of the OECD or of its Member countries.Third-party material– the licence does not apply to third-party material in the work. If using such material, you are responsible for obtaining permission from the third party and forany claims of infringement.You must not use the OECD logo, visual identity or cover image without express permission or suggest the OECD endorses your use of the work.Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012. The seat of arbitration shallbe Paris (France). The number of arbitrators shall be one. Foreword Given growing expectations for public service delivery, and sustainable development, under increasinglytight fiscal conditions, public procurement has emerged as a critical policy lever for governments. TheOECD 2015 Recommendation on Public Procurement calls upon countries to take a balanced approachto the use of procurement to achieve economy, efficiency, and strategic policy objectives. The EuropeanUnion also encourages Member States to use procurement to help achieve policy priorities outlined instrategic documents and policy frameworks. For example, the 2024 European Commission reportThefuture of European competitivenesshighlights the need for leveraging strategic procurement to reinforceEU’s market power regarding decarbonation and competitiveness. In Estonia, public procurement plays a significant role in the national economy, accounting for 15.3% ofGDP and nearly 35% of government expenditure in 2023. Recognising its strategic potential, Estonia isincreasingly using public procurement to support broader objectives such as tackling climate change,fostering innovation, and promoting economic growth and recovery, as presented in national strategies.To that end, Estonia has set ambitious targets for strategic procurement. By 2035, 20% of all procurementprocedures—representing 30% of total public procurement spending—are expected to include greencriteria, which are already mandatory for certain product categories. For socially responsible procurement,the targets are 10% of contracts by number and 20% by value by 2035. Estonia also aims for innovationprocurement to account for 2% of all procurement by 2027. To create the basis for the strategic use of public procurement, a skilled public procurement workforce isessentialwith expertise in various disciplines,including environmental/social science,cost-benefitevaluations, procurement regulation and legal provisions governing public contracts. In response, Estoniahas partnered with the European Commission and the OECD to strengthen the capacity of its procurementprofessionals. This report is part of the project“Promoting the uptake of strategic public procurement inEstonia through professionalising the public procurement workforce,”funded by the European Union viathe Technical Support Instrument and implemented by the OECD in co-operation with theReform andInvestment Task Force(SG Reform) of the European Commission. Thereport assesses the current state of both the uptake of strategic public procu