The public procurement muscle is far from trained for green requirements
It is important for the Danish climate effort that public procurement, especially within procurement areas with a large climate impact such as construction and facilities, is brought into play to support the green transition.
We can remove much more CO2 if we start making green requirements in public procurement. Unfortunately, we do not do that today, and the consequence is that the CO2 emissions from public procurement are increased by 12 per cent. from 2019 to 2021. The increase is primarily driven by supply within construction and construction, and as it looks now, we as min. past 2030, before emissions are expected to fall below 2019 levels. Public procurement therefore currently does not contribute to reaching the 70 percent target.
It should and must be changed. There is a great climate potential in setting green requirements in public tenders - especially within construction and facilities. For example, from 2023 the Norwegian Road Administration has introduced rules for bridges and tunnels which reduce CO2 emissions by up to 60 per cent.
In addition, there is the push in the market for more climate-friendly building materials, which a demand from the public sector will be able to create. It doesn't even have to be an expensive game. According to Tech for Net Zero will climate-neutral construction and construction projects only entail additional costs of between 5-7 per cent. If you transfer it to Danish conditions, it will therefore only cost between DKK 3,1-4,3 billion. DKK per year, to remove CO2 emissions from public construction projects. The extra costs will also fall as green public procurement creates greater demand and thus the volume of green solutions.
Unfortunately, today there are far between green requirements in public tenders. This is evidenced by the increase in the climate footprint from public procurement. Therefore, political action is needed. First of all, a reduction target should be set for public procurement that can ensure that public procurement contributes to Denmark's climate goals.
In the memo "Green Public Procurement - An untapped catalyst for climate reductions in construction and construction" we point to a further eight recommendations that can help to bring public procurement into play to a greater extent in the climate transition of construction and construction. It is important for Danish companies, for our climate and environment and not least to reach the 70 percent target.
This discussion post is listed on the stock exchange on 6 November 2023 og written by Ulrikke Nelboe Møllegård, Advisor in circular construction, Green Transition Denmark.

