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Cost-neutral Solutions for Green/ Sustainable Public Procurement Implementation

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Cost-neutral Solutions for Green/ Sustainable Public Procurement Implementation
Year: 2026
Language: English

Public procurement is one of the most powerful yet strikingly underutilised policy levers available to governments. Beyond acquiring goods, works and services, procurement shapes markets, influences investment decisions and can accelerate national developmental objectives such as climate action, circular economy transition, social inclusion and industrial competitiveness. Adopting Green and Sustainable Public Procurement (G/SPP) represents a government’s conscious shift in approach to systematically internalise environmental stewardship and societal well-being as core criteria in public decision making. Despite uptake in adoption of G/SPP policy by countries, the transformative potential of G/SPP is routinely constrained by a persistent belief that sustainable alternatives cost more and therefore are not affordable. This perception transcends geographic boundaries but is stubbornly pervasive in low-income and developing economies. In these economies, G/SPP is practically a non-starter because of the perception of higher costs of sustainable alternatives, coupled with tight budgets and political pressure to prioritise economic growth, job creation and poverty reduction. This knowledge product, however, responds to that challenge by reframing the debate from “green is expensive” to “green is economical long-term”, and presenting practical, cost-neutral pathways that allow contracting authorities to mainstream sustainability without overwhelming procurement budgets.