Climate-Friendly Procurement in Practice

On 2 September 2025, the Swiss Federal Office for the Environment (Bundesamt für Umwelt, BAFU) hosted an online session on climate-friendly public procurement. During the event, the International Institute for Sustainable Development (IISD) and the Collaborating Centre on Sustainable Consumption and Production (CSCP) explained how the CO₂ Performance Ladder works in practice and shared insights from countries already applying the instrument. This blog summarises the most relevant takeaways, with a particular focus on the German experience.

What is the CO₂ Performance Ladder? (In short)

The CO₂ Performance Ladder is a widely used tool that helps public authorities reward low-carbon suppliers.

It functions both as:

  • An energy and CO₂ management system, and
  • a procurement instrument that gives certified organisations a competitive advantage.

For readers new to the instrument, here are the essentials:

As IISD’s Ronja Bechauf summarised during the webinar:

“The Ladder is one of the most practical and effective instruments for climate-friendly procurement we have seen—because we know exactly how it works in real-world tenders.”

Ronja Bechauf, IISD

Learnings from Germany: what international audiences can take away

Germany is one of the newest countries to implement the CO₂ Performance Ladder. Still, the first pilots already provide valuable insights for public buyers elsewhere.

1. A motivated contracting authority makes all the difference

The City of Dortmund became the first major German procuring authority to adopt the Ladder.
Their approach: integrate the Ladder into a broader “climate factor”, giving suppliers multiple options to demonstrate climate performance – with the Ladder as the most ambitious and highest-scoring option.

This resulted in more than 100 tenders referring to the Ladder within a short period.

“We were fortunate to have a contracting authority willing to lead. Dortmund shows how important a clear political mandate and a willingness to experiment truly are.”

Mike Tabel, CSCP

Lesson:
A single frontrunner can accelerate national uptake—especially when procurement teams are open to piloting and learning by doing.

2. Early engagement with suppliers is essential

German SMEs showed strong interest in the Ladder but often needed:

CSCP observed that suppliers appreciated being invited early, not confronted with new criteria at the last minute.

Lesson:
Give suppliers sufficient preparation time and communicate upcoming tenders that may include the Ladder. This increases competition and climate impact.

3. Certification capacity must be built in parallel

One key component of the German rollout was close collaboration with and certification bodies, accreditation organisations,and national procurement networks. Without certification bodies, the Ladder cannot function at scale.

Lesson:
Countries considering adoption should begin early discussions with certification and accreditation bodies, as one of the first steps of implementation.

4. Translations and legal clarity are crucial for trust

Before launching pilots, Germany invested in:

This removed two major barriers for procurement officers.

Lesson:
Provide clear, accessible documentation in the local language—including legal guidance. This builds confidence and reduces perceived risk.

5. Start with the right procurement projects

Dortmund identified sectors where the Ladder creates immediate value, such as:

These categories have significant CO₂ impact and strong supplier markets.

Lesson:
Choose procurement categories where climate impact is high and suppliers can realistically participate at different Ladder levels.

Final takeaway

As Bechauf concluded:

“It starts with one bold contracting authority—or ideally a group of them. Learn from others, use the existing materials, and simply begin.”

Ronja Bechauf, IISD

You can watch the full webinar here (in German):

Klimafreundliche beschaffung mit der CO2 Performance Ladder

Presentations (in German):

IISD: Klimafreundliche Beschaffung met der CO₂ Performance Ladder

CSCP: Die CO₂ Performance Ladder in Deutschland