Document Type
Report
Publication Date
7-2024
Abstract
Public procurement represents a significant segment of the global economy, accounting for approximately 12% of the global GDP, according to a World Bank's 2020 report. Moreover, steel and cement are among the most carbon-intensive commodities, contributing about 14-16% of global energy-related CO2 emissions. Our latest publication under the COMET initiative, Green Public Procurement: How to Fulfill the Promise of Decarbonizing the Hard-to-Abate Sectors, analyzes Green Public Procurement (GPP) and its pivotal role in decarbonizing hard-to-abate sectors like steel manufacturing.
This comprehensive study delves into how governments can use their extensive purchasing power to shift market dynamics towards low-carbon alternatives, effectively absorbing the initial 'green premium' and driving industrial innovation. By implementing robust governance frameworks and aligning procurement practices with specific and escalating quantitative targets and clear quantification methods, GPP can become a critical force in reducing greenhouse gas emissions and advancing climate mitigation.
However, this paper highlights that the effectiveness of GPP is often hindered by the voluntary nature of targets, inconsistent accounting practices, and inadequate governance structures. To overcome these challenges, it recommends that GPP evolves from a passive to a proactive tool that supports the development and scaling of emerging technologies through the adoption of GPP innovative tools like the CO2 Performance Ladder (CO2PL) and Carbon Contracts for Difference (CCfDs), which respectively integrate carbon management into procurement processes and provide stable financial incentives to support nascent technologies in industrial decarbonization.
Our findings suggest that with strategic implementation, GPP can inspire a model for private sector adoption, enhancing the collective impact on industrial decarbonization and establishing a profound ripple effect across various industries. This publication provides a roadmap for leveraging GPP's full potential to contribute to a sustainable and economically viable future.
Disciplines
Environmental Law | International Trade Law | Law
Recommended Citation
Laura Garcia Cancino, Perrine Toledano, and Ingrid Zhou, Green Public Procurement: How to
Fulfill the Promise of Decarbonizing the Hard-to-Abate Sectors (New York: Columbia Center on Sustainable Investment (CCSI), June 2024).
Available at: https://scholarship.law.columbia.edu/sustainable_investment/39