Government Procurement

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As purchasers of a diverse range of goods, services and infrastructure to meet not only their own operational needs but also to deliver on their public service mandate, governments procurement spending represents scaled-up and long-term demand across a wide number of industries. Strategically directed, this demand has the ability to act as a market supporter and catalyst, incentivizing businesses to take the risks to invest, innovate and commercialize green products and services (IISD, 2012).

By committing to the purchase of goods and services that meet certain sustainability criteria, governments can help stimulate the creation of green markets. For instance, government procurement can trigger high-volume and long-term demand for green goods and services, and thereby allow firms to capture economies of scale. Appropriate incentives can boost technology investment and spur firms to innovate. In addition to stimulating the greening of economic sectors, procurement choices are crucial for governments to lead by example and demonstrate their commitment to sustainable development.

Relevance to the SDGs

The Sustainable Development Goal (SDG) 12 references the sustainable use of goods and services. Specifically, target 12.7 promotes public procurement practices that are sustainable, in accordance with national policies and priorities.

Explore green growth resources related to SDG 12:

SDG 12.7
  Sustainable Public Procurement  

Case Studies

Food and Agriculture Organization of the United Nations (FAO), United Nations Development Programme (UNDP)
Organisation for Economic Co-operation and Development (OECD)

Projects

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Partnership for Action on Green Economy (PAGE), International Labour Organization (ILO), United Nations Development Programme (UNDP), United Nations Institute for Training and Research (UNITAR), United Nations Environment Programme (UN Environment), United Nations Industrial Development Organization (UNIDO)
Ministry of Environment and Mineral Resources Kenya, United Nations Environment Programme (UN Environment)
International Labour Organization (ILO), United Nations Development Programme (UNDP), United Nations Institute for Training and Research (UNITAR), United Nations Environment Programme (UN Environment), United Nations Industrial Development Organization (UNIDO)

Green Growth National Documents

United Nations Environment Programme (UN Environment), Partnership for Action on Green Economy (PAGE)
Partnership for Action on Green Economy (PAGE), United Nations Environment Programme (UN Environment)
Partnership for Action on Green Economy (PAGE)