Partnering for Green Procurement: How IISD supports the CO₂ Performance Ladder

Expanding the CO₂ Performance Ladder to countries both within and beyond Europe requires extensive preliminary research. For example: What is a country’s current policy on sustainable procurement? What are its ambitions,  and who are the key stakeholders? The International Institute for Sustainable Development (IISD) helps SKAO with studies to gain valuable insights and contacts to implement the Ladder internationally. Ronja Bechauf explains how IISD does that and what it takes to make sustainable procurement mainstream worldwide.

The construction and infrastructure sector is responsible for a large share of greenhouse gas emissions worldwide. By sustainably procuring projects in this sector, governments can therefore make a significant impact in terms of CO₂ reduction. The International Institute for Sustainable Development (IISD) studies, among others, what governments in countries worldwide need in order to include sustainability in their procurement policies, explains Ronja Bechauf, policy advisor at IISD.  ‘We are an international think tank. Our procurement work consists partly of research into what countries are already doing in the field of sustainable procurement and their ambitions in this area, and partly of advice. We help them with issues, train procurers, and see what tools they can use to shape sustainable procurement.’

“Few tools combine demonstrable impact with ease of use. The Ladder is accessible to any company, whether you are just starting out with carbon reduction or are a frontrunner.”

Ronja Bechauf, IISD

Value of the CO₂ Performance Ladder

Within the broad playing field of sustainable procurement, the CO₂ Performance Ladder is one of the tools governments can use. Bechauf explains why IISD considers the Ladder a powerful tool in achieving CO₂ reduction in tenders. ‘The Ladder has been a proven effective tool in projects for over 15 years. Few tools combine demonstrable impact with ease of use. You need relatively little technical knowledge to implement the Ladder, and that is important for procurers. In addition, the independent control and transparency ensures that companies cannot abuse a certificate for greenwashing. With all its levels and requirements, the Ladder is a very robust way of defining what is green and sustainable. Another thing I really like is that the Ladder is accessible to any company, whether you are just starting out with carbon reduction or are a frontrunner.’

First collaboration between IISD and SKAO

Although both IISD and SKAO – the foundation behind the Ladder – have both existed for many years, it was not until 2021 that they started working together. Bechauf: ‘That came about after SKAO decided to roll out the Ladder internationally. Until then, they only focused on the Netherlands and Belgium. As part of their international ambitions, we set up a project with SKAO for a feasibility study. Before conducting this study, we first did a quick scan of 28 countries in Europe. Based on policy analyses and conversations with stakeholders, we looked at which countries were ambitious in green procurement and which countries had other priorities. This gave a good picture of which countries might be interested in using the Ladder.’

Complementing each other

After the quick scan, we zoomed into ten countries’ procurement systems in more depth, Bechauf continues. ‘For purposes of our study we held focus group discussions and consultation sessions. In these, together with SKAO, we told stakeholders what the Ladder means and how to use it, and people could ask us questions. We also held a number of interviews with experts and looked at what in terms of policy and legislation is needed to use the Ladder. The combination of IISD and SKAO works very well. We complement each other: SKAO brings in-depth expertise on the tool, while we, as an independent party, analyse the broader GPP landscape. In fact, it is not that we promote the use of the Ladder. We present it as one of the tools in the toolbox for green public procurement (GPP) and as a potentially interesting option to explore in addition to other actions that can help accelerate GPP.’

We complement each other: SKAO brings in-depth expertise on the tool, while we, as an independent party, analyse the broader GPP landscape.

Ronja Bechauf, IISD

Many similar challenges

The feasibility study brought IISD some interesting insights, says Bechauf. ‘What was particularly striking is that many countries are struggling with similar challenges. For example, the search for easy to use tools, but also having a reliable and certain definition of what green and sustainable means. Whether it is a local or national government, these kinds of issues surface everywhere. And if there was already a definition, it was again a question of how to monitor and reward sustainability in a project. In particular, good monitoring is often still very difficult. What we also saw is that many countries do not keep track of how many tenders include sustainability criteria. So you actually don’t know whether you are making progress in sustainable procurement either.’

First international project outside the Netherlands and Belgium

Following the feasibility study, IISD recommended SKAO to pursue some pilot projects in a few countries such as Ireland and the UK. The first of these – a tender for re-asphalting a section of the M7 bypass in Ireland – was launched and completed in 2024. Here, thanks to the use of the Ladder as an award criterion, an emission reduction of 21 per cent was achieved. Although the implementation of the pilot projects is done by SKAO and local partners, IISD does follow them closely. Bechauf: ‘On the one hand because they show that sustainable procurement is successful thanks to a tool like the Ladder, but also because they provide new knowledge about the challenges surrounding GPP. It is very insightful for us to observe the process and analyse the results. Insights from a pilot project can in turn help us do studies in other countries. And where necessary, we provide technical advice.’

Exploratory studies outside Europe

IISD also conducts research on sustainable procurement outside Europe. In 2024, for instance, the think tank conducted studies in Indonesia and India, among other countries. Bechauf: ‘These are studies where we look a lot at ambitions and hold discussions with stakeholders such as NGOs, governments and the private sector on the challenges and what is needed to advance GPP. The challenges in emerging economies and the Global South are also particular, in that there are fiscal and market constraints for green goods and services that we have to think about when advocating for GPP. It is especially critical that we follow the lead of local stakeholders when it comes to designing tools for GPP.’

Differences in ambitions

The studies revealed, among other things, that India and Indonesia face similar challenges, such as lack of capacity, tools and clear definitions of green procurement. At the same time, there are also clear differences between the two countries, says Bechauf. ‘For example, Indonesia already has quite a lot of ambition in sustainable procurement, while India is still at the beginning of the journey. We think that it would be valuable for India to develop a strategy for sustainable procurement and set up a platform for gathering and sharing knowledge. In South Africa, another focus country, many tenders focus on social goals and less on the environment. What is interesting in that country is that new legislation on procurement is emerging. This could be leveraged to use the Ladder, for example.’

More than just country studies

Besides studies in specific countries, IISD is also conducting research on, among other things, better monitoring of GPP, one of the challenges highlighted in the European feasibility study. Bechauf: ‘The study focuses on monitoring the tangible outcomes of GPP, especially the carbon emissions that can be saved. The Ladder can help in two ways. First, it generates insights into the emissions of contractors through the certification, which procuring agencies can use. And second, procuring authorities can be certified themselves and learn about their emissions. Additionally, we published a study on the role of multilateral development banks, such as the World Bank, in procurement. These institutions have a lot of influence on procurement systems through their funding. In our study we looked at how multilateral development banks can support and encourage the market to reduce carbon emissions in procurement.’

Providing a valuable network

Bechauf hopes that all the insights from the studies can help SKAO further roll out the CO₂ Performance Ladder, support on-going momentum on GPP and the development of new tools for GPP. ‘It is great that in a number of European countries the use of the Ladder in tenders is now being made concrete in pilot projects. But of course much more is needed to scale this up further. In the coming years, we hope to pave the way further, including outside Europe. What the exploratory studies also help a lot with is a more global understanding of the key stakeholders and agents of change in different countries. At the end of the day, procurement is about people and for GPP we need to build and connect this network of frontrunners across the world.’

Three action points necessary

In conclusion, Bechauf identifies three action points that she believes are necessary to successfully scale up sustainable or green public procurement. ‘The first is ensuring a clear definition of what exactly we mean by green and sustainable procurement. Preferably a definition that is the same internationally. We hope that the revision of the European Procurement Directive can help with this. The second action point is to make green public procurement mainstream. This requires commitment from governments. It would help if sustainability were a mandatory element within a tender. That would also prevent a lot of discussion, and send a clear signal to companies. Finally, countries need to invest in knowledge and capacity building. To put sustainable procurement into practice, procurers and companies need skills, resources, and practical tools.’

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