Directive 2023/1791 EED: A Step Closer to or a Missed Opportunity for Mandatory Green Public Procurement Criteria Through Sectoral Legislation – Working Paper Series

The Evolving Landscape of EU Energy Efficiency Policy

Alexandru Buftic‘s research tackles one of the most pressing issues of our time: sustainability in the construction industry. His work aligns closely with the European Union’s ambitious goal of achieving climate neutrality by 2050, offering valuable insights into how this sector can contribute to a greener future.

Buftic’s research focuses on two critical dimensions. First, he investigates best practices for energy-efficient public buildings at the local level, seeking to understand the conditions for success and the dynamics that could accelerate the widespread adoption of sustainable practices among Public Authorities. By identifying effective, flexible, and adaptable strategies, his work aims to provide actionable guidance for practitioners in the field.

Second, Buftic explores how Public Authorities can leverage the power of Public Procurement and Green Public Procurement to promote energy-efficient practices. Through clear criteria, this aspect of his research aims to stimulate long-term sustainability in the construction market, overcome existing challenges, and foster innovative solutions.

Buftic’s working paper, titled “Directive 2023/1791 EED: A Step Closer to or a Missed Opportunity for Mandatory Green Public Procurement Criteria Through Sectoral Legislation,” represents a key contribution to this broader research agenda. By offering a comprehensive analysis of the EU’s latest legislative efforts to promote energy efficiency and sustainability through public procurement, the paper sheds light on the challenges and opportunities for leveraging sectoral legislation to effect transformative change in the construction sector and beyond.

The working paper is structured as follows: First, it provides an overview of the EU’s energy efficiency policy landscape, tracing its evolution from the oil embargo of the 1970s to the current focus on the Energy Efficiency Directive 2023/1791 (EED 2023). It then delves into the key features of EED 2023, analyzing its potential to mandate Green Public Procurement (GPP) criteria through sectoral legislation. Finally, it offers a critical assessment of the Directive’s challenges and areas for improvement, providing insights into how the EU can further enhance its regulatory framework to drive transformative change in the energy efficiency of public buildings.

Alexandru’s working paper contributes to the SAPIENS Work Package 3 – Sectorally applied SPP.

Working Paper Abstract

The European Union’s Directive 2023/1791 EED represents a critical milestone in the EU’s journey towards aligning public procurement with its climate neutrality aspirations. This working paper provides a comprehensive analysis of the Directive, situating it within the broader context of the EU’s evolving energy efficiency policy landscape and assessing its potential to mandate Green Public Procurement (GPP) criteria through sectoral legislation.

The paper begins by exploring the historical challenges and market failures that have shaped the EU’s approach to energy efficiency, particularly in the context of public buildings. It examines how the EU has sought to leverage public procurement as a strategic tool for driving sustainable market behavior, highlighting the limitations of the current legal framework in fully capitalizing on this potential.

The analysis then delves into the key features of EED 2023, including the ‘Energy Efficiency First’ principle, ambitious energy consumption reduction targets, and the heightened emphasis on GPP. By scrutinizing these provisions, the paper sheds light on the Directive’s potential to bridge the gap between policy objectives and tangible outcomes in the pursuit of a more sustainable and energy-efficient Europe.
However, the paper also offers a critical assessment of the Directive’s challenges and areas for improvement. It underscores the non-mandatory nature of GPP criteria and the lack of stringent enforcement mechanisms as significant barriers to the Directive’s effectiveness.

The analysis further highlights the economic and technological disparities among Member States, potential sovereignty concerns, bureaucratic complexities, and the risk of inequitable application due to exemptions and derogations.

In conclusion, the paper argues that while EED 2023 represents a step closer to leveraging public procurement for sustainability, it falls short of being a transformative opportunity for mandating GPP criteria through sectoral legislation. To fully realize the potential of public procurement in driving the EU’s climate neutrality goals, the paper calls for the introduction of binding targets, stringent enforcement mechanisms, and a more adaptive and evidence-based regulatory framework that keeps pace with the dynamic nature of technology and market demands.

Written by Alexandru Buftic

Alexandru Buftic conducts his research at Babes-Bolyai University on how different CAs are developing sustainability criteria for the construction sector on a voluntary basis and how these criteria can be applied in the entire lifecycle of construction works. For over 10 years, he has dealt with project management across multiple sectors – e.g., construction, manufacturing – and with various world regions – i.e., Europe (Romania, Moldova), South Asia (China), East Asia (Indonesia). This work has been supported by analytical and research experience gained in Sweden into concrete ways in which industry leaders hardwire sustainability into business practice through management controls.

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