Public procurement plays a key role in national commitments to tackle climate change. The potential of public procurement to contribute to sustainable development was first highlighted at the United Nations Conference on Environment and Development (also known as the ‘Earth Summit’) held in Rio de Janeiro in 1992. Governments recognised their role as powerful consumers in the marketplace and their responsibility to steer consumption and production systems towards more sustainable trends. This shift in perception has elevated public procurement to a strategic government function in the pursuit of environmental objectives. Just like private companies, governments can contribute to a significant reduction in greenhouse gas (GHG) emissions by adopting sustainable procurement practices and giving priority to eco-designed products and services, renewable energies, and by integrating strict environmental criteria into their calls for tenders.
Promoting Strategic and Green Public Procurement in France
Abstract
The implementation of public policies to achieve environmental objectives, while crucial, is not always obvious and often suffers from a lack of visibility. Governments need to demonstrate that public institutions can be a driving force behind the green transition and that citizens can have trust in their public institutions to actively support these transitions. Public procurement offers an opportunity to give concrete expression to the public administration's commitments to its citizens. In this way, government operations and contractual practices can incorporate a principle of energy efficiency or carbon neutrality in order to set an example for the private sector and society as a whole, and to encourage behaviours and innovations that are necessary to support the climate transition.
Strategies and measures based on the concept of Green Public Procurement (GPP) emerged more than a decade ago, and their uptake has increased significantly since the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs) were defined. 32 of the 34 OECD countries that responded to a recent survey (94%) have a national GPP policy or framework, showing that GPPs are widely seen as an effective lever for achieving nationally-defined climate goals. 81% of these countries also identified public procurement as a vehicle for meeting climate commitments in their environmental policies (see Figure 1.1). (OECD, 2023[1]).
Source: (OECD, 2024[2])
France is one such country. Through various legislative and political initiatives, the French government has committed to integrating environmental considerations into its public procurement procedures, with the aim of contributing to the achievement of its sustainable development objectives. Public procurement is a major lever of economic policy in France, representing around 8% of GDP in 2021, and over 61% of public procurement contracts in terms of volume are awarded to SMEs. Although the share of public procurement, expressed as a percentage of Gross Domestic Product (GDP), is significantly lower in France than the average for OECD countries (12.9% of GDP), the funds committed to public procurement remain a significant source of public spending, representing more than a quarter of total public spending in France in 2021. (OECD, 2023[1])
Furthermore, public procurement has an impact not only on economies, but also on societies and the provision of public services. According to OECD data, certain sectors in France, such as health and education, account for a higher proportion of public procurement spending than other OECD countries (see Figure 1.2).
Source: (OECD, 2023[1])
The regulatory framework in France sets out specific targets for the inclusion of environmental considerations both in public procurement and for certain private sector purchasers. The National Plan for Sustainable Procurement (PNAD) 2022-2025 is a national roadmap for the 3 civil services (State, Local Authorities, Hospitals), and for private sector players. Its aim is to ensure that by 2025, 100% of contracts awarded during the year include at least one environmental consideration. The Climate and Resilience Law of 22 August 2021 also sets a target of environmental considerations in 100% of public procurement by 2026. The PNAD also states that by 2025, at least 30% of public procurement contracts should include at least one social consideration.
In order to implement these objectives, the DAE (State Procurement Directorate) has created a series of progressive objectives for procurements by the State and its public bodies, from 2021 to 2025 for contracts awarded in excess of €40,000. Although achievement of these objectives initially fell short of the targets set, with 20.4% of contracts including an environmental consideration in 2021 against a target of 30%, and 21% in 2022 against a target of 40%, there was a sharp increase in 2023, with a rate of 54.7% against a target of 60%. Additional measures have also been taken in 2024 to ensure that these targets are met, particularly with regard to inter-ministerial contracts, as well as in-depth communication at decentralised level and the mobilisation of ministerial procurement managers to ensure compliance with these obligations. Based on historical data, a prediction model estimates that the integration of environmental considerations will reach 68% in 2024 and 83% in 2025 (see Figure 1.3).
Note: The forecast predicts future values using the AAA version of the exponential smoothing algorithm (ETS). The predicted values are weighted averages of past observations, with recent observations given more weight.
Source: Author
Several factors may explain this phenomenon. One possible explanation lies in the ability of procurement professionals to make these objectives their own. Integrating environmental considerations into public procurement requires procurement officers to master complex concepts such as life cycle costing and the carbon footprint of a good or service. A survey carried out by the OECD among 555 state procurement officials (from ministries and public bodies) reveals that a lack of skills or knowledge in this area, and a lack of practical tools to implement them, are the main barriers to the inclusion of environmental considerations in procurement (see Figure 1.4).
Source: (OCDE, 2024[3])
The implementation of PNAD's objectives relating to social considerations seems to be more successful with purchasers. In fact, the social aspect seems less complex to implement, and support tools have been put in place to assist procurement officers. Some 480 facilitators currently provide support to procurement officers, mainly from local authorities and State departments, in the drafting of tenders, analysis of target groups and monitoring of the implementation of social integration clauses. Conversely, developing responsible purchasing policies and using environmental criteria in public tenders requires a multi-faceted set of skills. Green public procurement requires expertise from a wide range of disciplines, including environmental science, cost-benefit assessments, public procurement regulations and the legal provisions governing public contracts. Public purchasers have to navigate a complex decision-making process where environmental considerations, financial assessments and compliance with legislation can be contradictory. As such, effective professionalisation of procurement staff and capacity building in environmental matters is necessary to achieve the public policy objectives. The DAE itself has recognised this need in its sustainable procurement policy for the State and its public bodies by including a recommendation on the professionalisation of State procurement officers.
The aim of this report is to take stock of the capacity of the French State's procurement function to implement environmental considerations in procurement. Through an analysis of available data, a wide-ranging survey of state procurement officers, interviews with a number of stakeholders and a review of international best practice, the report aims to identify opportunities for enhancing the knowledge and skills of state procurement officers. It also examines the structure and content of the training offered and the use of tools developed to support procurers in adopting sustainable procurement practices. It focuses solely on procurement by the State and its public bodies, and does not analyse the capacity of those involved in the procurement function in local authorities and hospitals.
This report begins with an overview of the legislative framework and national policy initiatives to promote green public procurement, highlighting the objectives set and the means deployed to achieve them. It then explores the reality of implementing these policies at the level of procurement officers, focusing on the challenges faced in integrating environmental considerations into procurement decisions. Finally, it analyses the current training and tools available to procurers. The report puts forward a series of recommendations designed to strengthen the capacities of state procurement officers in France. These recommendations aim to facilitate a smoother transition towards the wider integration of environmental criteria into all aspects of public procurement, in line with national and international ambitions for sustainable development.
This report is therefore intended as a tool for reflection and guidance for political decision-makers, public procurers and other stakeholders involved in State procurement, at both central and decentralised levels. Its aim is to contribute to a better understanding of the issues, progress and challenges associated with the various environmental policies (such as decarbonation) impacting public procurement, and to provide a solid basis for the development of capacity-building strategies aimed at improving the contribution of public procurement to the country's environmental objectives.
References
[3] OCDE (2024), OECD ProcurCompEU survey of 555 agents in the public procurement function.
[2] OECD (2024), Making the green transition happen: a compendium of good practices on Green Public Procurement.
[1] OECD (2023), Government at a Glance 2023, OECD Publishing, Paris, https://doi.org/10.1787/3d5c5d31-en.