The Circular City Centre – C3. Circular Public Procurement in Cities
The European Investment Bank’s guide Circular Public Procurement in Cities explores how local governments can use public procurement to accelerate the circular economy transition. Public procurement represents around 14% of the EU’s GDP and accounts for an estimated 11% of its greenhouse gas emissions. The guide argues that cities, as major public buyers, hold strategic power to reduce emissions, minimise waste, and foster innovation through circular purchasing practices.
Circular Public Procurement (CPP) is defined as the process through which public authorities acquire goods, works, or services designed to keep materials and energy in closed loops, reduce waste, and avoid negative environmental impacts. The guide outlines how embedding circular principles, durability, reparability, reuse, and recyclability, can transform procurement from a cost-driven process into a catalyst for systemic sustainability.
The document reviews the EU’s policy framework supporting CPP, including the Public Procurement Directives, the Circular Economy Action Plan (CEAP), the Sustainable Products Regulation, and the Net-Zero Industry Act. It highlights that while legislation enables circular procurement, uptake across Europe remains limited, with fewer than 6% of tenders including circular criteria.
Key challenges identified include balancing short-term costs with long-term benefits, limited supplier readiness, lack of political will, and insufficient capacity among procurement professionals. The guide proposes solutions such as life-cycle costing, early market engagement, joint procurement, and targeted training to build institutional capability.
Practical case studies from cities like Amsterdam, Malmö, Paris, and Helsinki illustrate how circular procurement can be applied to construction, goods, and services, ranging from modular public buildings to reused ICT equipment and sustainable food services.
Ultimately, the guide positions circular procurement as an essential lever for cities to deliver on climate goals, stimulate green jobs, and foster resilient, resource-efficient urban economies.
