Europa Posted on 2026-08-19 10:35:00

€2.5 trillion in spending power could be greened - Business coalition pressures EU to act

From Dorian Koça

€2.5 trillion in spending power could be greened - Business coalition

A coalition of 26 businesses and civil society organizations representing more than 11,500 companies is urging the European Commission to make low-carbon emission criteria mandatory in EU public procurement rules ahead of a review expected on September 9.

In a letter sent to the Commission on August 18 and led by the Italian climate change expert group ECCO, the signatories say that public authorities spend around 2.5 trillion euros a year on procurement, equivalent to around 16% of EU GDP.

However, they argue that Europe is not using that purchasing power aggressively enough to create demand for cleaner products and technologies, creating a disconnect in Brussels' approach: companies are being incentivized to decarbonize, while market conditions do not always reward those who do.

"Public procurement has the potential to send clear signals to the market, supporting the adoption of more sustainable technologies and production processes. However, this potential remains only partially exploited," the letter states.

Spain has built its reputation in renewable energy to position itself as Europe's future leader in green hydrogen. But some energy experts are urging caution about the growth of an industry that would rely heavily on massive increases in the availability of zero-carbon electricity from sources such as wind or solar.

The signatories say procurement remains too price-driven, while green criteria, introduced under the bloc's Net Zero Industry Act in 2024, are often voluntary and implemented differently across member states. They argue that this fragmentation prevents public purchasing from becoming a reliable market signal for European industry.

If governments consistently favor cleaner steel, building materials, technology and other products, the coalition argues, suppliers will have a much stronger commercial incentive to invest in decarbonization.

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