The European Commission’s podcast “Making an Impact with the CO₂ Performance Ladder in Europe: How It Works and Why It Matters” explores how this Dutch-born instrument is transforming procurement practices across Europe. Experts from France and the Netherlands share how the Ladder helps both public authorities and companies take concrete steps towards zero emissions — not through regulation, but through smart incentives and collaboration.
The CO₂ Performance Ladder began over a decade ago within the Dutch railway sector, where ProRail wanted to gain better control over its own and its suppliers’ carbon emissions. In close collaboration with the market, the organisation developed a system that rewarded companies taking measurable action on carbon reduction — turning shared sustainability ambitions into concrete procurement criteria.
“Suppliers told us: ‘You have all these ambitions, but in procurement you don’t differentiate between us — those who invest in green technology — and those who don’t,’” explains Harald Versteeg, Transition Manager at De Bouwcampus and Chair of the CO₂ Performance Ladder Committee of Experts. “That dialogue led to the first version of the Ladder — a practical framework to put climate ambitions into practice.”
Today, thousands of procurement procedures in the Netherlands use the Ladder, and the model is being embraced in EU countries such as France, Ireland and Portugal.
Jean-Louis Tourneux, Director General of Asea in France, highlights that the Ladder’s strength lies in its adaptability:
“It provides a standard tool that any public procurement entity and any supplier can use — the same framework, but with the flexibility to define your [the suppliers’] own ways to reduce emissions.”
In practice, the Ladder works by rewarding organisations for the maturity of their carbon management. Higher levels correspond to greater ambition and broader impact — from managing emissions within one’s own operations to reducing them across the supply chain. Companies can demonstrate their performance through independent certification, which can then be used as evidence in tenders.
In France, this same approach has been adapted to fit national procurement regulations. However, instead of granting a fictitious discount, as is common in the Netherlands, French contracting authorities integrate the Ladder as a separate quality criterion, granting points based on the proposed ambition level. Suppliers that commit to achieving a higher performance level receive more points, while the system remains open to newcomers who are just starting their carbon journey.
The Ladder’s robust auditing process ensures that sustainability promises translate into real action. After one year, certified suppliers are subject to a third-party audit to verify whether they have achieved the carbon reduction level they committed to.
Tourneux notes:
“Having this requirement to be audited within one year is an excellent way to avoid greenwashing. If suppliers don’t reach the promised level, there can even be financial penalties.”
This transparency and accountability build trust — not only between buyers and suppliers, but across entire supply chains.
Versteeg emphasises that the Ladder’s ultimate goal is to foster collaboration:
“Success means that the supply chain becomes a community that works together to reduce emissions: designers, builders, material suppliers, and public authorities all focused on the same goal.”
By combining vertical cooperation (within supply chains) and horizontal learning (between competitors), the Ladder accelerates the transition to low-carbon operations across sectors.
In France, where sustainable procurement is a top policy priority, the CO₂ Performance Ladder offers a proven, ready-to-use solution.
Tourneux explains:
“We already have multi-billion euros’ worth of contracts that include the Ladder. The feedback is outstanding. Now the challenge is to scale it up, just like in the Netherlands.”
The growing European interest demonstrates that public procurement can be a powerful lever for climate action — turning ambition into measurable results.
Want to hear more from Harald Versteeg and Jean-Louis Tourneux?
👉 Watch or listen to the full episode below.
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