Content area
Green public procurement (GPP) is a key policy instrument for promoting sustainable development and supporting the transition to a circular economy. It contributes to more efficient resource use, environmentally responsible consumption, and innovation in public service delivery. Municipalities play a crucial role in this process, as their procurement decisions influence market behavior and help implement both the European Green Deal and the UN Sustainable Development Goals, particularly SDG 12.7. This study presents a case study of Latvia and is based on municipal survey data collected in 2018 and again in 2025. The research identifies product and service categories where GPP has been applied and highlights that municipalities mainly implement it when legally mandated. Based on surveys from 2018 and 2025, regulatory obligation remains the key driver. Although the shortage of procurement specialists has decreased, challenges like insufficient support tools, weak managerial involvement, and limited guidance persist. The findings emphasize the need for stronger institutional support and policy action to shift GPP from a compliance measure to a strategic sustainability tool.
ABSTRACT
Green public procurement (GPP) is a key policy instrument for promoting sustainable development and supporting the transition to a circular economy. It contributes to more efficient resource use, environmentally responsible consumption, and innovation in public service delivery. Municipalities play a crucial role in this process, as their procurement decisions influence market behavior and help implement both the European Green Deal and the UN Sustainable Development Goals, particularly SDG 12.7. This study presents a case study of Latvia and is based on municipal survey data collected in 2018 and again in 2025. The research identifies product and service categories where GPP has been applied and highlights that municipalities mainly implement it when legally mandated. Based on surveys from 2018 and 2025, regulatory obligation remains the key driver. Although the shortage of procurement specialists has decreased, challenges like insufficient support tools, weak managerial involvement, and limited guidance persist. The findings emphasize the need for stronger institutional support and policy action to shift GPP from a compliance measure to a strategic sustainability tool.
Keywords: green public procurement, sustainable development, circular economy, European Green Deal, SDG 12, Latvian municipalities, public governance
INTRODUCTION
Green Public Procurement (GPP) is recognised as an important tool for sustainable development of state and local governments and can reduce environmental pressures through the application of GPPs. [1] It is important that GPPs are also recognised as a driving force for market development towards a circular economy. On average, annual public procurement accounts for 14% of the EU gross domestic product, which is a very large financial volume. Consequently, smart public procurement can make a significant contribution to climate objectives, sustainable development, the promotion of the circular economy and the efficient use of resources. [1] [2]. The main aspect of GPP is the use of environmentally friendly products and services throughout their lifecycle, from the production stage, logistics and use respectively, to their recycling or disposal. [3]. The procurement process takes into account not only financial aspects but also energy efficiency, CO: emissions, the use of renewable resources, waste reduction [4].
The principles of GPP are governed by a number of international instruments, in particular at European Union, United Nations and OECD level. Within the framework of the UN Sustainable Development Goals (SDG), GPP are identified as the main mechanism for achieving objective 12, responsible consumption and production, in particular objective 12.7, which calls for the promotion of sustainable procurement practices in line with national policies and priorities [5]. At European Union level, one of the strategic documents 1s the European Green deal (European Green deal), which identifies GPPs as a central tool for driving the European Union towards climate neutrality by 2050 [1]. The Circular economy Action Plan includes GPP as a tool to facilitate the transition to reuse, repair, recycling practices, but a key resource for sustainable use. [1]. A significant milestone in the use of GPP at European Union level was 2014, when Directives 2014/24/EU and 2014/25/EU were adopted, which provide for the possibility of using environmental criteria such as life cycle cost calculations and environmental management systems in the procurement process [2]. These Directives give Member States the right to include environmental and social aspects already in the Technical Specification and evaluation criteria. The World Trade Organisation (WTO) Agreement on Government Procurement (AGP) also allows environmental requirements to be included if they are non-discriminatory and objectively justified, thus ensuring alignment of GPP with international trade principles [6]. In the EU, GPP are applied on a voluntary basis, there are some countries where GPP are mandatory, such as Italy, Germany, Latvia, Lithuania, [3], while elsewhere they are applied on a voluntary basis. The flexibility of such an approach allows countries to choose their level of integration while maintaining political consistency with the SDG. GPP also improve economic and social sustainability by creating green jobs, fostering the development of local markets and businesses, and fostering innovative circular economy solutions such as product reuse, repair and recycling [7]. European Union documents set public procurement as an example for the market, pointing out that public authorities must play a leading role in the implementation and development of green standards [8].
GPP are an important mechanism enabling public authorities to introduce concrete solutions to promote green transformation across society and the economy [9]. In Latvia, GPP are an integrated instrument of sustainable development policy that promotes the choice of environmentally friendly goods and services at the State and local government level. Latvia's sustainable Development Strategy by 2030 underlines the need to include energy efficiency and life cycle cost assessment aspects in public procurement [10]. Since 2017, Cabinet of Ministers Regulation 353 makes GPP mandatory for seven groups of goods and services, including office paper, food and catering services, as well as information and communication technologies, cleaning products. in 2023, amendments were made to extend the mandatory scope of GPP to 9 groups of goods and services, including the construction of Group 3 buildings and light transport [11]. The empirical study on Latvian municipalities shows that there are significant regional differences in the implementation of GPP. For example, a survey on the implementation of GPP in Latvia's counties found that financial restrictions, lack of expertise and insufficient understanding of the benefits of GPP are the main challenges. The involvement and development of local authorities in this area is crucial to achieving the national environmental sustainability targets [12]. While GPP have a positive impact, the implementation of GPP faces many challenges, both institutional and practical. These include lack of knowledge and expertise, limited budgets, insufficient political will, and the market's failure to provide adequate green solutions. These challenges require an integrated approach, including curricula, inter-institutional cooperation and legislative development. Previous studies have shown that there are a number of significant obstacles to the implementation of GPPs. The main points made by the Vines are: unclear or underdeveloped regulatory frameworks [13, 14, 15], limited financial resources and confidence in the highest costs of green solutions [13, 16]. It is noted that there is often a lack of political support and leadership involvement in the successful implementation of GPPs. An important aspect which is pointed out that procurement professionals do not have sufficient knowledge of the application of GPP [13, 16, 17]. Market readiness is also mentioned: consequently, there is a lack of green product suppliers and institutional capacity [13, 17]. It is noted that procurement regulation is complex and difficult to apply [15, 18].
MATERIALS AND METHODS
The purpose of this study is to assess the proportion of GPPs in regions and local governments of Latvia, to analyse the application of GPPs in procurement of projects of the Structural Funds of the European Union, as well as to evaluate obstacles and challenges in the application of GPPs. In order to assess the development of GPPs, an anonymous survey was conducted in Latvian municipalities in 2018 and the same re-survey in 2025 so that changes can be seen in the 7 year period. It is important to take into account that the administrative territorial reform was implemented in Latvia in 2021, which came into force on 1 July 2021. Before the reform, there were 119 municipalities (counties and Republic cities) in 2018, while after the reform (2025) there are 43 municipalities (36 county municipalities and 7 state capitals). The survey was carried out using a questionnaire sent electronically to all Latvian municipalities. For the data to be comparable and reliable, the survey content was the same in both periods. The questionnaire was based on similar studies in the EU as on academic studies on the implementation and enforcement challenges of GPPs. The survey covered the following thematic sections: The scope of GPPs (e.g. food services, street lighting), the motivation for the application of GPPs, obstacles (lack of resources, lack of time, lack of managerial awareness, etc.), the need for support and advice, the nature of EU fund procurement and the impact of legislation. In 2018, replies were received from 55 local governments (or 46% of all 119 local governments), but in 2025 - from 42 (or 97.6% of all 43 local governments and state capitals). These data show that, compared to 2018, the survey coverage was almost complete in 2025, which ensures higher data representativeness and allows generalizations to be made about the application of GPPs across the national territory. The data were analysed using descriptive statistical methods. A comparative analysis was carried out between 2018 and 2025, assessing the dynamics in the different areas of GPPs. The data have been analysed and aggregated at institutional level without identifying a particular municipality. All ethical principles have been followed: questionnaire completion was voluntary, no personal data were collected, only local government level information (population), data were analysed anonymously, only for research purposes.
RESULTS
One of the questions put to the municipalities was why green public procurement was carried out (see Figure 1). The main reason for the performance of GPP has been the regulatory framework, Cabinet of Ministers Regulation No. 353 "requirements for Green public Procurement and procedures for the application thereof", which determines mandatory conditions for the performance of GPP. in 2025 all municipalities surveyed performed GPP due to the directly existing regulation, 78.2% of municipalities mentioned this as a reason in 2018.
The number of municipalities using the GPP criterion in EU fund projects has increased significantly (see Figure 2). The GPP criterion is increasingly used in the formulation of conditions. Following the adoption of the 2020 Circular economy Action Plan, the European Commission proposed mandatory GPP criteria and targets in sectoral legislation, as well as progressively introducing mandatory reporting to monitor their implementation. Compared to 2018, the share of GPPs in European Union fund project revenues has increased, from 40% in 2018 to 86% in 2025.
By analysing data on the volume of GPPs performed in product and service groups, it can be prevented that the most GPPs are made in procurement of food purchase and catering services in 2018 78.2%, but in 2025 90.5% (see Table 1).
The biggest increase in 2025 is in purchases made by indoor curfew, where the increase veio 60.8%. The application of GPPs to street lighting increased by 56.3%. The group where the decline is seen is office paper, where the decline accounts for 13.2% compared to 2018. Based on the survey data, most local governments always noted on the website of the Procurement monitoring Bureau in 2018 and 2025, if environmental requirements were used in procurement. However, in 2025, more than a quarter of respondents were unsure whether they had done so, indicating the need to improve the flagging system by offering more clearly stated information on environmental claims.
The main obstacles faced by municipalities in the GPP procedure have been insufficient support tools for the application of GPPs and limited procurement budgets (see Figure 3). Compared to 2018, scarce financial resources have almost halved as a barrier, but shortages of support tools have become more acute. There has also been an increase in management awareness of the application of GPPs and the results of the survey show the need to develop practical tools and guidelines. However, insufficient provision of procurement specialists has decreased from 32.7% to 16.7, indicating that measures may have been taken in municipalities to attract or train specialists, as well as this indicates that the lack of procurement specialists has not been felt as much after the reform of local governments by merging counties.
In both surveys, municipalities pointed to the necessary improvements in the implement ation process of FADs (see Figure 4). "GPP support tools need to be improved" -78.6% indicated it in 2025, which is the most significant obstacle in 2025. There is also a link between a lack of understanding of GPPs as a barrier and a desire for advice points and practical training.
Local authorities also point to the need to set up consultation points and to organise practical training with the participation of experts from different areas, which would help to address problems related to lack of understanding and knowledge about the application of GPP. These aspects are particularly important given the increase in the number of municipalities that recognise that they still lack understanding of the need for GPP. In order for green public procurement in Latvia to become a norm rather than an exception, and for it to be implemented consistently and efficiently throughout the country, it is essential to continue work on developing practical support mechanisms, strengthening local government capacity and raising awareness of sustainable added value of procurement. Local authorities should provide practical, everyday tools, advisory support and targeted training.
DISCUSSION
The initial objective of the study was to evaluate the practice of applying GPP in Latvian municipalities, comparing 2025 with 2018. A survey was conducted with a particular focus on attitudes, obstacles and changes over time. When evaluating the survey data, they confirm the initial hypothesis that regulatory framework and administrative capacity are the main factors influencing the implementation of GPP. As found in other studies, the regulatory framework contributes significantly to the application of GPP [1], [5]. It can be inferred from the questionnaires that the responses provided by the Latvian municipalities highlight a similar situation as pointed out in the international publications, including lack of knowledge, insufficient management support and lack of support tools [3], [6], [8]. The results of the survey confirm that these factors are not unique to Latvia's situation, but can obtain confirmation that centralised policy is necessary and the application of practical methodological assistance GPP is fragmented and depends on the capacity of the local government. At the same time, an unexpected but clear result is the failure to indicate environmental requirements in the Register of the Procurement monitoring Bureau - this indicates problems in the flow of systemic information, not the deliberate ignorance of GPP. When assessing Latvia's challenges and crossings in the application of GPP, they coincide with the identified challenges in Europe and beyond [4], [7]. In Latvia, it is clear that mandatory requirements define the limits of application of GPP, if it is not mandatory, then the GPP do not apply. Consequently, the question arises as to the extent to which GPP in Latvia are used above the minimum of the law - this could be a significant issue for future research. The study has limitations - based on self-assessment by local governments and results can be influenced by subjective responses as well as a lower number of respondents in 2018.
CONCLUSION
The study's merk was to evaluate the application of GPPs in Latvian municipalities. The results of the comparative analysis between 2018 and 2025 reveal that there has been a significant increase in the application of GPPs to European Union Structural Funds projects, where such an approach is often determined by legislation. When assessed by product group, where the GPP is applied, it is noted that the GPP applies only to obligatory groups, as well as it appears on the issue of the reason for the application of the GPP, indicating that it is due to regulatory provisions. In assessing obstacles to the application of FADs, the tendency to lack support tools, insufficient management involvement, as well as weak methodological base and insufficient knowledge of procurement specialists continues. In particular, it should be noted that GPP are used predominantly only in the categories of goods or services where mandatory regulation so provides. However, in areas where green requirements are recommendable or voluntary, their use is minimal. This underlines the lack of motivation for local authorities to act strategically towards sustainability in the absence of external regulatory coercion. Positive trends are also observed at the same time. The shortage of qualified procurers has decreased and some municipalities express their willingness to use GPP more actively, provided that appropriate tools, advice and examples from good practice are available. This demonstrates the potential for development that could be achieved by strengthening a targeted support framework.
It can be inferred from the results of the survey that the implementation of GPPs is currently perceived more as an administrative requirement than as a tool for strategic implementation of environmental and social objectives, seeing long-term benefits. Changing this paradigm of thinking and choice requires targeted professional improvement, including training programmes on GPP, national and regional support centres. It is also important to ensure that sustainability is included in local government development planning and day-to-day management processes. It is recommended that future studies focus on several directions: (1) assessment of the impact of GPPs on environmental quality, (2) the relevance of GPPs to budgetary efficiency and (3) the market's ability and readiness to adapt to green requirements in different product categories. Only a multilevel approach - legal, institutional and professional - can ensure that GPP serve as an effective tool for achieving the SDGs.
ACKNOWLEDGEMENTS
This study is part of the project funded by Recovery and resilience Facility project No.5.2.1.1.1.0/24/I/CFLA/007 "Internal and external consolidation of the University of Latvia", project grant «Integrating Socio-Economic Aspects of the European Green Deal into Research and Academic Content: A Circular Economy Framework».
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