1 November 2019

SUSTAINABLE FINANCE – new article highlights the possibilities for public procurement

To achieve carbon neutrality and fulfil the commitments made under the Paris Agreement, the EU will require investments of about €175-290 billion per annum in the energy, transport, construction, water and infrastructure sectors – this is according most recent estimates. Public and private funds will have to be redirected into sustainable investments to make this happen. Responding to the urgency of this issue, the European Commission has submitted an ambitious and unique Action Plan on Financing Sustainable Growth.

Creating more opportunities for green investment and raising investor awareness about the risks associated with climate change indeed requires action on all fronts. Mark Hidson, Global Director of ICLEI’s Sustainable Procurement Centre, and Paula Land, Officer at ICLEI’s Sustainable Economy and Procurement team, have published an article in the European Files Magazine, highlighting the role that public procurement can play in directing funds towards climate change mitigation solutions. Despite the opportunities, there is also a need to level the playing field for sustainable finance and a lack of awareness and skills among public officials. This lack can be addressed by clear political support for “future-proof” procurement and legislation that levels the playing field for sustainable procurement.

“It needs governments at all levels that make clear and ambitious commitments to use sustainable public procurement to make their societies resource-efficient, low carbon and socially responsible. For a future-proof Europe, every public authority will need to do their bit in working towards a sustainable economy and society, and sustainable procurement is a vital part of this transition.”- Mark Hidson, Paula Land, Waking the Giant – European Files Magazine.

The most recent edition of the European Files Magazine looks more broadly into how the public and private sector can tackle the issue of sustainable climate finance. Contributions from the French Economy and Finance Minister Bruno Le Maire and EIB Vice President for climate action and environment Emma Navarro, among other, to discuss how public policy must change to direct more finance towards future proof solutions, and how private investors can change their risk assessment strategies to factor in the risks related to climate change.

Download the complete edition of the European Files Magazine here.