Capacity-Building Event on Financial Incentives for Circular Public Procurement Held in Hungary

Date: 24.02.2026
 

On 11 February 2026, the capacity-building event “Financial Incentives, Central European Perspective for a Circular Economy” took place in Kesztölc, Hungary. The session was organised by DDRIÜ Nonprofit Ltd. – South Transdanubian Regional Innovation Agency (STRIA) within the CE-PRINCE project.

The on-site training brought together representatives from the public sector, with 8 organisations and 10 individual participants attending. The event aimed to strengthen knowledge and practical skills related to Circular Economy (CE) principles and Green Public Procurement (GPP), with a particular focus on financial and regulatory incentives supporting the transition.

Main Focus of the Event

The session highlighted the systemic importance of public procurement, which accounts for approximately 10–12% of EU GDP annually. Integrating environmental criteria into procurement procedures can significantly influence markets, stimulate innovation, and promote sustainable production and consumption patterns.

Participants gained insight into key EU legislative frameworks, including:

  • Packaging and Packaging Waste Regulation (PPWR)
  • Ecodesign for Sustainable Products Regulation (ESPR)
  • Forthcoming Green Claims Directive

The training also addressed relevant Hungarian legal frameworks, such as waste management law, extended producer responsibility (EPR), environmental product fees, and public procurement regulations.

Key Topics Covered

  • Circular economy principles and waste hierarchy
  • Life-cycle thinking and life-cycle cost (LCC) calculation
  • The strategic role of green public procurement
  • Financial and policy incentives at EU and national levels
  • Environmental award criteria, eco-labels, and contract performance clauses

Special emphasis was placed on the economic rationale of environmental regulation, particularly the internalisation of environmental externalities through mechanisms such as deposit return schemes and EPR systems.

Practical Dimension

Participants discussed real examples of green procurement in sectors including:

  • Construction (use of recycled materials)
  • Office equipment and IT
  • Low-emission mobility solutions
  • Catering services
  • Public lighting

Challenges specific to Central and Eastern Europe were also addressed, including financial constraints, limited awareness, and the need for harmonised evaluation systems.

Outcomes and Follow-Up

The event combined lecture-based presentations with interactive discussion. Key conclusions highlighted the importance of life-cycle costing over purchase-price comparison, the need for harmonised sustainability criteria, and the necessity of further capacity-building to translate policy ambition into practical implementation.

Follow-up actions include sharing materials with participants and organising further thematic sessions under the CE-PRINCE project.

The event contributed to CE-PRINCE’s objective of strengthening cooperation between public authorities and market actors and fostering harmonised Circular and Green Public Procurement practices across Central Europe.