7 August 2018

Transition to low carbon economies through public procurement

The World Energy Investment Report 2018, published by the International Energy Agency (IEA) highlights public procurement as one strategy to phase out fossil based fuels and materials.

As an example, the report points out the Netherlands and Canada, which have public procurement rules in place that favour materials with low-carbon footprints for building projects. In the Netherlands, tenderers can have their bids evaluated with a price reduction of up to 5% if their performance meets certain criteria. This, the report says, could “make the difference” for companies that convert CO2 into building materials, and ultimately help establish “significant and sustainable” markets worldwide.

Globally, 2017 has seen a decline in investment in renewables, which could threaten the expansion of clean energy. As the IEA states, this investment would need to go up rapidly to meet clean energy targets.

The full report can be accessed here.