Ecolabels can be required – new report clarifies the legal situation

Every year, the public sector in Sweden purchases goods and services worth more than SEK 920 billion – more than one-sixth of the country’s GDP. This makes public procurement one of society’s most important tools for driving sustainable development. Despite this, ecolabels are used in only around 6 percent of procurements today.

That is a significant missed opportunity – both for the environment and for the efficiency of the public sector. An overly narrow interpretation of the so-called "linkage requirement" in the Swedish Public Procurement Act (LOU) – meaning that procurement criteria must be clearly linked to the subject matter of the contract – may have hindered the full use of ecolabels in public procurement. The report “Requirements for labelling in public procurement” clarifies the legal situation and shows that both the EU Procurement Directive and the LOU provide clear support for using ecolabels as award criteria and contract performance conditions. This has been possible for over a decade, but the opportunity has not been utilised in Sweden.

– Contracting authorities are here given clear legal support for including ecolabelling requirements as part of the procurement process. It becomes easier both to set requirements and to verify that they are actually met, which saves resources for both purchasers and suppliers, says Mathias Sylvan, legal expert and author of the report.

Referring to established and independent ecolabels offers practical benefits. It simplifies follow-up, reduces the administrative burden, and ensures that environmental requirements are based on scientific evidence.

– We urge public buyers to continue setting environmental requirements, because time is short. The climate crisis, environmental pollution and biodiversity loss are accelerating. Our public funds should reward the companies that are best at reducing the environmental impact of their products, says Sofie E Munteanu, head of Good Envirionmental Choices at the Swedish Society for Nature Conservation.

– Ecolabelling is an effective tool for achieving environmental and climate goals, and the report clarifies that it is legally feasible. Public procurement plays a key role in accelerating the transition to a more sustainable future, says Anna Linusson, CEO of Ecolabelling Sweden (the Nordic Swan Ecolabel and the EU Ecolabel).

Overall, the report highlights that there is great potential to increase the use of ecolabels in public procurement – something that benefits both the environment and the economy.

Read more about the possibilities provided by the EU Procurement Directive to set far-reaching requirements for ecolabelling in procurement.