Sustainable Public Procurement: Global Experience and Ukrainian Context

Today, the world is undergoing a fundamental transformation of economic models. The United Nations 2030 Agenda for Sustainable Development (Sustainable Development Goals, SDGs) poses unprecedented requirements for member states to integrate environmental, social, and economic dimensions into national policies. Public procurement, which accounts for a significant share of global GDP, is recognised as one of the most powerful strategic instruments for achieving these global goals. This instrument has been named Sustainable Public Procurement (SPP).

In Ukraine, the integration of SPP has gained particular importance in the context of fulfilling international obligations, including within the framework of the Association Agreement with the EU and the EU programme “European Union for Environment” (EU4Environment). Analysis of SPP implementation progress indicates a transition from declarative intentions to the formation of systemic mechanisms that are intended to ensure the public procurement sector’s contribution to achieving the SDGs.

SPP as a Key Instrument for Implementing UN SDGs: Direct and Indirect Link to the SDGs

Public procurement is the only instrument directly mentioned in the SDG system – in Goal 12 (Responsible Consumption and Production), specifically in Target 12.7: “Promote public procurement practices that are sustainable, in accordance with national policies and priorities.”

In addition to the direct link, SPP provides a multiplier effect for achieving a number of other SDGs:

– Goal 9 (Industry, Innovation, and Infrastructure): Stimulating demand for innovative and environmentally friendly products;

– Goal 7 (Affordable and Clean Energy): Procurement of energy-efficient equipment and services, contributing to emission reduction;

– Goal 13 (Climate Action): Considering the carbon footprint and low-carbon development requirements in tender documentation;

– Social Dimension: The requirement to consider inclusive interests and reduce negative impacts on human health, which directly relates to the social dimension of sustainability.

Regulatory and Legal Legitimation of SPP in Ukraine

Ukraine confirmed its commitment to the global Agenda by adopting the Presidential Decree “On the Sustainable Development Goals of Ukraine for the Period up to 2030.” Moreover, the Strategy of the State Environmental Policy for the Period up to 2030 directly defines “the implementation of sustainable public procurement” as one of the main principles of the state environmental policy. This provided a clear political mandate to embed sustainability criteria into national legislation.

The new version of the Law of Ukraine on Public Procurement, effective from April 19, 2020, became a key step to enhance SPP potential in Ukraine, implementing the requirements of Directive 2014/24/EU. It introduced three fundamental mechanisms for assessing sustainability:

– Environmental characteristics (technical specifications): The possibility of setting mandatory requirements for the environmental characteristics of goods, works, or services, referencing international standards and eco-labels (e.g., DSTU ISO 14024), which are mandatory for execution;

– Non-price criteria: Restrictions on the use of non-price criteria (e.g., functional, aesthetic, environmental, social) have been removed, with a total weight that can reach 30%. This allows for a price advantage to be given to more quality and sustainable proposals, even if their initial price is higher;

– Life Cycle Costing (LCC) assessment: A novelty that allows for considering not only the purchase price but also all costs associated with the operation of the subject of procurement (energy, maintenance, disposal). The use of LCC, for example, for energy-efficient equipment, ensures an objective assessment of the economic benefit and overall effectiveness of the procurement.

Currently, we anticipate a new Law on Public Procurement, which will further deepen the possibilities for using SPP.

Challenges and Directions for Optimising SPP Use

Despite significant progress, Ukraine faces challenges on the path to full integration of SPP into the SDG system:

1. The Problem of Monitoring Automation and Reporting:

– currently, the monitoring of sustainability criteria in procurement is undergoing a hybridisation stage. Although the Prozorro system has already implemented electronic criteria (e.g., “Compliance with environmental norms,” available from March 28, 2025), this allows for automating the collection of data on the establishment of sustainability requirements;

– at the same time, full monitoring of compliance with the criteria – i.e., verification of supporting documents (certificates, conclusions) submitted by the winner – still requires manual work by the State Audit Service. The lack of technical capability to enter all sustainability criteria in a machine-readable format limits the full automated analysis of SPP progress using the BI Prozorro module.

2. The Need for Criteria Legalization:

– сontracting authorities, fearing appeals, prefer to use the price criterion;

– there is a clear need to approve the procedure for setting SPP criteria, which would provide contracting authorities with the necessary confidence and legal support.

To ensure the maximum contribution of public procurement to achieving the UN SDGs, there is a wide scope for improvement, such as:

– technical integration and deepening of automation by completing the integration of the full list of SPP criteria into the electronic tender documentation of Prozorro (fields for “machine-readable” input), integrating them with the BI Prozorro module. This will ensure not only the collection of data on the establishment of criteria but also full electronic monitoring of progress and analysis of the impact of SPP;

– updating existing and developing new instruments, including the approval of recommended SPP criteria and LCC application methodologies;

– conducting mandatory professional training and advanced training for procurement specialists and representatives of relevant state bodies.

Conclusions

Sustainable Public Procurement is not merely an administrative requirement, but a strategic investment tool for the future. In the context of EU integration and fulfilling global commitments, the Ukrainian procurement system has the potential to transform from a simple buying-and-selling mechanism into a powerful engine for the “green” economy, stimulating innovation, reducing environmental risks, and increasing social well-being, which will directly contribute to achieving the UN SDGs by 2030. Realizing this potential requires consolidated efforts from the government, the expert community, and technical support from international partners.