Public authorities in the EU spend up to 14% of GDP on public procurement. Following a recent Communication from the European Commission, the majority of the public contracts awarded in the EU were just based on the lowest price criterion.
Despite the efforts made by the Commission and the European Parliament to add new criteria like sustainability and innovation, many Member States disregard this mandate and show a risk aversion to incorporate tools like Life Cycle Cost Analysis (LCCA) when assessing the awarding of public works. Nevertheless, the use of LCCA, in combination with other criteria, helps in making the right choice of solutions for sustainable, safer and lasting infrastructures needing few maintenance and respectful of the principles laid down by the circular economy.
EUPAVE is convinced that new public procurement and green procurement rules can become a ‘game changer’ in awarding public contracts and making circular economy a reality.