Stocktaking Study on Green Public Procurement in India

Green public procurement (GPP) is a component of sustainable public procurement that uses public sector purchasing to achieve environmental policy objectives and for green growth. GPP is a process which involves consciously and systematically factoring environmental goals during the procurement of goods, services and works by public agencies. This conscious and systematic factoring involves the use of technical specifications, evaluation of bids and proposals, standards, certifications, and labelling. GPP is a tool for meeting environmental objectives, taking climate action and for promoting green growth through lifecycle-based approaches.

While estimates fluctuate with time, public procurement as a percentage of GDP in the country is estimated to be 20% to 22%. Barring the procurement of electrical appliances of a notified threshold of Bureau of Energy Efficiency (BEE) Star rating and initiatives by Government e Marketplace (GeM), present initiatives are largely voluntary and operate within a niche ecosystem. While many initiatives are emerging in India on green public procurement, the larger policy and market ecosystem can be further understood and strengthened.

The objective of the stocktaking study was to analyse the status of green public procurement in India to come up with a baseline which will then form the basis of subsequent activities like research work, or support in policy development to be undertaken by the World Bank. The study analysis included agencies at the national level (ministries and corresponding central public enterprises [CPSEs]) as well as for states/union territories of India. This study also reviewed the market readiness for four sectors—construction, transport, power, and electrical goods—which were identified based on the significance for procurement in terms of value and volume in India. The assessment of green public procurement readiness encompassed both procurers and suppliers. The selection of public entities was based on the significance to public procurement in terms of value and volume.