A broad coalition of business and civil society groups is urging the European Commission to turn the EU's massive public purchasing power into a driver for decarbonisation. In a letter sent on 18 August, led by the Italian climate think tank ECCO, 26 organisations representing more than 11,500 companies call for mandatory low-carbon criteria in EU public procurement rules, ahead of a revision expected on 9 September.
Public authorities across the bloc spend roughly €2.5 trillion a year on goods and services – about 16% of EU GDP. Yet, the signatories argue, this purchasing power is not being used aggressively enough to create demand for cleaner products and technologies. The result, they say, is a disconnect in Brussels' approach: companies are urged to decarbonise, but market conditions do not always reward those that do.
"Public procurement has the potential to send clear signals to the market, supporting the uptake of more sustainable technologies and production processes. However, this potential remains only partially exploited," the letter reads.
The coalition points out that procurement decisions are still too often based on the lowest price, while green criteria – introduced under the Net Zero Industry Act in 2024 – are largely voluntary and applied inconsistently across member states. This fragmentation, they argue, prevents public purchasing from becoming a reliable market signal for European industry. If governments consistently favour cleaner steel, construction materials, and technologies, suppliers would have a much stronger commercial incentive to invest in decarbonisation.
Political push to end lowest-price-only awards
The coalition is also making a more political demand: phase out lowest-price-only awards and make the "most economically advantageous tender" the norm. That would allow public authorities to weigh carbon emissions and other factors alongside cost, giving them greater flexibility to support sustainable suppliers.
To avoid creating a new reporting burden, the groups suggest tying procurement to existing EU climate rules, such as the emissions trading system or the carbon border adjustment mechanism. Using methodologies already in place would make emissions data more comparable across the single market, they argue.
"To facilitate market adaptation, ensure legal certainty and prevent fragmentation, these requirements should be introduced progressively and structured around a clear distinction between core mandatory minimum criteria, acting as eligibility thresholds, and additional reward criteria to incentivise over-compliance and continuous innovation," the letter states.
The push comes as EU co-legislators debate the Industrial Accelerator Act, which introduces "Made in Europe" preferences in public procurement and public support to counter the dominance of the US and China and revive the bloc's industrial base alongside the energy transition. The Commission's upcoming revision of procurement rules is seen as a key opportunity to embed sustainability into the framework.
Some member states, including Spain, have already been positioning themselves as leaders in green hydrogen, but experts caution that scaling up such industries will require massive increases in zero-carbon electricity. The coalition's proposal could help create the demand-side pull needed to make such investments viable.
If the Commission adopts mandatory green criteria, it would effectively make procurement a central pillar of Europe's industrial strategy – a shift that could reshape supply chains and accelerate the transition to a low-carbon economy. The letter's signatories include major companies and NGOs from across the continent, reflecting a growing consensus that public money should be spent in line with climate goals.
