What have we found?
👉 Challenges for Public Authorities
Public administrations face multiple challenges in integrating green and circular criteria into procurement processes. Financial constraints emerge as the most important obstacle, with budget limitations, high costs of green procurement, and restricted financial resources making it difficult for PAs to prioritize circularity in public tenders.
Beyond financial aspects, knowledge gaps represent a major barrier. Many PAs lack education and training on circular economy practices, as well as the specific expertise needed to effectively design green procurement criteria. Without adequate knowledge, drafting tenders that drive sustainability remains a challenge.
At the same time, regulatory uncertainty—due to unclear legal frameworks and the absence of concrete guidelines—hinders enforcement, while limited stakeholder engagement and internal coordination challenges further slowdown the adoption of circular procurement.
👉Challenges for Enterprises
On the supply side, enterprises struggle to align their offerings with public procurement expectations. A strong emphasis on price competitiveness in tenders discourages investments in sustainable and circular solutions, making it difficult for businesses to justify the costs of greener alternatives.
Additionally, rigid administrative procedures create significant hurdles—particularly for SMEs—by making participation in tenders complex and time-consuming. The lack of feedback after unsuccessful bids further reduces opportunities for companies to improve and tailor their proposals to public sector needs.
Finally, risk aversion from public procurers leads to a reluctance to adopt innovative solutions, limiting market demand for circularity. Without stronger signals from PAs that they are willing to prioritize sustainability, companies may find it challenging to justify investments in circular business models.
Key Takeaway
Despite these challenges, increased collaboration, clearer regulations, and targeted capacity-building efforts can unlock the potential of circular procurement. Moreover, strengthening dialogue between buyers and suppliers is essential to accelerating the transition to a more sustainable economy.
Find the detailed report here: https://www.interreg-central.eu/wp-content/uploads/2025/02/Milestone_01_Initial_Assessment-Report.pdf