Building a Green Future EU: New Horizons in Green Procurement - March 2025

Building a Green Future EU: New Horizons in Green Procurement - March 2025

As we enter the 2020s, the European Union (EU) is further promoting the procurement of environmentally friendly products and services, so-called "green procurement".
In particular, the European Green Deal, announced in December 2019, is a comprehensive policy package aiming to make the EU climate neutral (virtually zero greenhouse gas emissions) by 2050, and green procurement is one of its key pillars.

Latest Trends in 2025

- Reduction of energy tariffs
Launch of a €500 million pilot plan with the European Investment Bank (EIB) to guarantee long-term renewable energy purchase contracts for small and medium-sized enterprises (SMEs). Also, a package of at least €1.5 billion to support power grid component manufacturers.

- Promoting Clean Technologies
A €100 billion "Industrial Decarbonization Bank" is to be established in 2026, to be funded by existing innovation funds and proceeds from the Emissions Trading Scheme (ETS). In addition, the EU-level private financing tool, InvestEU, will be revised to mobilize an additional €50 billion.

- Circular Economy and Trade
A circular economy law will be adopted in 2026, establishing a joint purchasing center for important metals and minerals. Reducing raw material costs and promoting recycling and simplifying the Carbon Border Adjustment Mechanism (CBAM).

Challenges and Coordination

However, the EU also faces challenges in balancing environmental goals and economic growth: according to press reports on February 28, 2025, the European Commission has proposed relaxing corporate sustainability disclosure rules and reducing the number of companies subject to environmental and social risk reporting requirements. While this is intended to reduce the burden on small and medium-sized enterprises (SMEs) and promote economic growth, it has also been suggested that it could weaken their commitment to long-term climate goals.

Related Information

- What is the European Green Deal?
- Announced in 2019, it strengthens climate action across the EU.

- EU Clean Industry Agreement (February 2025).
- Policies include €100 billion of investments.

- Deregulation of sustainability reporting (February 2025)
- Proposed deregulation of mandatory environmental risk reporting.

Progress in green procurement in the EU in the 2020s will be characterized by deepening policies and the introduction of new economic support measures.
At the same time, adjustments are required to balance environmental goals and economic growth, and future policy developments will be closely watched.