Environmentally Friendly Standards in Tender Procedures Are Not Always Beneficial
Research
30.05.2025
New ZEW Study Reveals: Green Standards in Public Procurement Bring Opportunities, but Also risks
A recent study by ZEW Mannheim analyses the effects of public procurement policies and voluntary standards on the introduction of environmentally friendly products by businesses. The study shows that while both types of measures increase the likelihood of environmental innovation when implemented individually, their simultaneous application can have an inhibiting effect on innovation. The findings provide important impulses for a sustainable innovation policy and an effective organisation of public procurement.
“Our research shows that both voluntary standards in general and public procurement make a positive contribution to furthering environmental innovation. But combining these two instruments can lead to unintended effects. In particular, rigid standards can hinder the innovation-promoting effect of procurement,” explains Dr. Bastian Krieger, head of the Junior Research Group “Co-Creation” at ZEW and study co-author.
Effective green public procurement is a challenge
The effectiveness of public procurement standards depends on how they are framed. Specifications that rely on strict compliance with predefined criteria have only a limited effect in promoting innovation, whereas using standards flexibly as a minimum threshold can reward major environmental progress and thus stimulate innovation. The problem: There is currently a lack of standardised and detailed data to measure exact effects and steer policy accordingly. “Nevertheless, on average, we see that the use of voluntary standards currently appears to limit the effectiveness of public procurement in encouraging businesses to implement significant environmental innovations.”
The researchers found this based on an analysis of responses from over 5,000 companies in the 2021 German Innovation Survey. The study therefore highlights the need to make standards and procurement requirements clearer and coordinate them better in order to promote the innovation campaign in the environmental sector in a sustainable manner.
