Circular public procurement (CPP)

Circular criteria, such as in public procurement, are gaining traction across European cities and regions. The share of surveyed local governments at city and regional level in Europe that reported including such criteria has grown from 53% in 2020 to 63% in the latest survey. While the samples differ between editions, this snapshot suggests a growing recognition of public procurement as a lever to advance circular economy (CE) goals. With only 6% of respondents not applying or planning to apply CE criteria in their public procurement (and this is a declining percentage), almost all public authorities surveyed recognize the potential of procurement as a catalyst for circularity. However, the sample of respondents might be biased, because the ones that already take actions tend to reply more to such surveys.

While some sectors, such as construction (61%), show strong uptake (e.g., due to their high material intensity and carbon footprint), other areas like textiles (36%), plastics (35%), and vehicles (33%) show more limited integration. Less than 40% of respondents currently apply life cycle assessment (LCA) or have established monitoring frameworks to capture the degree to which circularity approaches can contribute e.g. to lowering environmental impacts of products and services, highlighting a gap between strategic objectives and operational practices.

Despite this, promising innovations are emerging, including the reuse of materials in new construction (e.g. Gothenburg), integration of recycled textiles, and procurement contracts requiring product reparability or carbon tracking per meal (e.g. London) (see the underlying OECD report for more details). Cities are also experimenting with leasing models, repair frameworks, and deposit-return systems. These approaches signal growing sophistication but remain unevenly distributed.

Public procurement represents approximately 14% of EU , giving public authorities a powerful tool to influence market dynamics and innovation. Green Public Procurement (GPP) and specifically circularity approaches channel this purchasing power toward products and services that prioritize durability, reparability, recyclability, and reduced environmental impact.

Following the 2020 EU Circular Economy Action Plan (CEAP), the European Commission introduced proposals for mandatory GPP criteria in sectoral legislation, supported by tools like the and Energy Label. These aim to make environmental life cycle impacts more visible to both public buyers and consumers. The Clean Industrial Deal (CID) from the European Commission aims to boost demand for decarbonized products and promote circularity through public and private .

While the upfront costs of circular procurement may be higher, studies and pilot projects suggest that medium- and long-term economic and social benefits—such as reduced waste, improved health, and job creation—can outweigh short-term expenses. Scaling these efforts requires stronger policy coordination, common targets, and clear monitoring systems.

Note: The text of the indicator fiche was polished and revised with the support of ChatGPT (free version, May 2025) by cross-checking the drafted text and data with the OECD publication and language editing. We thank colleagues from the OECD for reviewing the indicator fiche.