The European Green Deal and Public Procurement Law

Its extraterritorial reach beyond the EU’s borders

Our Early Stage Researcher (ESR) Ezgi Uysal (University of Turin), along with Prof. Willem A. Janssen (Utrecht University, Groningen University), authored the chapter titled “The European Green Deal and Public Procurement Law: Its Extraterritorial Reach beyond the EU’s Borders.” The chapter is published in “Deploying the European Green Deal: Protecting the Environment Beyond the EU Borders” edited by Mar Campins Eritja and Xavier Fernández-Pons as part of the Routledge Studies in Environmental Policy Series.

Deploying the European Green Deal

Protecting the Environment Beyond the EU Borders

The book examines the implementation of the European Green Deal (EGD) and the EU’s efforts to promote environmental protection globally. It begins by evaluating key conceptual issues and analysing sectoral initiatives relevant to the Green Deal’s external dimensions, such as the Carbon Border Adjustment Mechanism, the 2030 Biodiversity Strategy, and the Deforestation Initiative. It also addresses horizontal aspects like Green Deal Diplomacy, Green Public Procurement (GPP) and Corporate Sustainability Due Diligence. The book concludes with an analysis of how the EU can enhance its impact on international environmental governance while acknowledging its limitations. This book provides insights into the practical deployment of the EGD.

A Synopsis of EGD’s Reach Beyond the EU through Public Procurement

Our ESR Ezgi’s research as part of the SAPIENS Network delves into identifying legal obstacles in enforcing sustainability clauses, and examining contract management practices for sustainable performance. This contribution, co-authored with Prof. Janssen, on “The European Green Deal and Public Procurement Law: Its Extraterritorial Reach beyond the EU’s Borders” intersects with these inquiries, specifically by investigating the integration of sustainability requirements into contracts as it delves into the significant role that public procurement plays in advancing the environmental objectives of EGD. It highlights the European Commission’s emphasis on leveraging the purchasing power of public authorities, which accounts for a substantial portion of the EU GDP, to promote green objectives when procuring goods, services, and works. The chapter discusses how EU procurement rules, coupled with the EGD, aim to extend these rules throughout global supply chains.

Furthermore, the chapter explores the intersection of the EGD and public procurement law, shedding light on its extraterritorial implications beyond the EU’s boundaries. It begins by setting the stage for the discussion on the pivotal role of public procurement in advancing the EGD’s environmental objectives. The authors delve into the foundations of EU public procurement law and its alignment with GPP, highlighting the potential of public procurement to drive sustainable practices. Within the broader context, the chapter explores two key mechanisms for advancing GPP within the EU: nudging member states and mandating GPP through sectoral legislation. These mechanisms serve to bolster the EGD’s objectives by leveraging the purchasing power of public authorities.

Moving to the effects of the EGD beyond the EU’s borders, the chapter investigates the potential extraterritorial effects of public procurement under the EGD and legislative initiatives following it. Firstly, the authors discuss how contracts awarded under the EU public procurement regime may require certain characteristics or performance conditions concerning processes and production methods in the supply chains, taking the requirement of a link to the subject matter and life cycle into consideration. In the analysis, the review of the Construction Products Regulation is used as an example. Secondly, the authors focus on the interplay between EU public procurement law and violations of environmental law outside of the EU. They analyse how the breach of environmental law prompts the exclusion of an economic operator or the rejection of a tender. In the analysis, the Regulation on Deforestation-Free Products is used as an example.

Effective compliance monitoring, particularly in extraterritorial contexts, is vital for upholding green commitments in public contracts. Utilising various monitoring tools, such as self-monitoring and third-party monitoring, is essential to ensure that contractual commitments align with environmental objectives under the EGD. This emphasises the need to professionalise public procurement regardless of geographical scope. In conclusion, the chapter highlights the transformative potential of the EGD in reshaping public procurement practices both within and beyond the EU. It underscores the importance of addressing extraterritorial challenges to effectively implement GPP on a global scale.

Read the full chapter “The European Green Deal and Public Procurement Law – Its extraterritorial reach beyond the EU’s borders” in open access below.