On 28 May 2025, the Latvian Sustainable Procurement Association organised an inter-institutional discussion on the future of green public procurement (GPP) in Latvia, bringing together in one place representatives of the Ministry of Finance (MoF), the Procurement Monitoring Bureau (PMB), the Ministry of Smart Administration and Regional Development (VARAM), the Ministry of Agriculture (MoA), the Ministry of Climate and Energy (MoCE) and the Ministry of Economics, as well as the Latvian Association of Local and Regional Governments, the Latvian Organic Agriculture Association, the Council of Agricultural Organisations Cooperation, the Federation of Food Companies of Latvia, the Latvian Association of Construction Companies, the Environmental Advisory Council, the Riga Energy Agency, the Latvian Rural Advisory and Training Centre, the Latvian Association of Procurement Practitioners, the Vidzeme Planning Region, the Ecodesign Competence Centre and others.
Representatives of the Ministry of Finance and the Procurement Monitoring Bureau presented the scenarios they have drawn up for the development of the public procurement field. Drawing together the practice reports delivered within the working group and assessing the proposals received for improving procurement, the MoF put forward two options for the development of public procurement for further discussion: 1) introduce radical changes that would provide maximum flexibility, focusing on the core aims of procurement and ensuring oversight through analytics, KPIs and reference prices, or 2) retain the current situation, making priority clarifications and simplifications.
At the centre of the discussion was the "radical scenario" proposed by the working group led by the Ministry of Finance, which among other things envisages abandoning Cabinet of Ministers Regulation No. 353 "Requirements for green public procurement and the procedure for their application" and, consequently, abandoning the mandatory application of GPP. The proposed solution would make green procurement a voluntary choice that contracting authorities may apply on their own initiative. Representatives of the Ministry of Finance and the Procurement Monitoring Bureau stressed the aim of simplifying the procurement system and reducing bureaucracy, but pointed out that the radical scenario leaves no room for retaining GPP, since it is regarded as a secondary rather than a primary aim of procurement. Green public procurement currently serves as one of the main strategic tools for putting European Union and Latvian policy goals into practice — environmental protection requirements, including meeting climate targets, introducing ecodesign requirements and using resources efficiently. Diminishing its status not only weakens the system built up so far, but also jeopardises Latvia's ability to fulfil its international commitments and achieve its sustainable development goals.
Several important points were raised in the discussion by representatives of the responsible ministries. The VARAM representative reported on the progress of GPP implementation and stressed that the system in Latvia has been developed step by step — the first Cabinet Regulation No. 353 "Requirements for green public procurement and the procedure for their application" was adopted back in 2017. At present, under these regulations, GPP must be applied to 9 groups, for example food, catering, construction works, lighting and cleaning products, while for a further 14 groups it may be applied voluntarily. If the regulation were repealed, it would mean a significant step backwards in the development of the system, the dominance of the lowest-price principle and the disappearance of environmental requirements from procurement practice, because as soon as requirements are voluntary, they are not applied. It was also emphasised that a system is easy to dismantle but far harder to rebuild. Problems with data quality were noted — GPP is currently recorded only after procurement results are announced, when contracting authorities often no longer record or reflect the requirements they applied with any precision. In 2022, GPP reached its highest ever volume — more than 33% by contract value, amounting to 1.28 billion euros — but by 2024 it had shrunk to 8.7%, or 399 million euros, of the total contract value awarded under the Public Procurement Law.
The MoA representative stressed that green procurement criteria for food were introduced as early as 2012, and their later inclusion in Cabinet Regulation No. 353 provided a uniform and legally anchored system for applying them. Removing GPP requirements from the regulatory framework will reduce the share of local food in food and catering procurement, including in schools and kindergartens.
The MoCE pointed out that if green procurement is implemented on a voluntary basis with no incentive mechanism, there is a possibility that challenges may grow in meeting the requirements set by the EU in the fields of environmental, energy and climate policy.
Participants in the discussion agreed that simplifying procurement procedures is necessary in order to ensure more efficient and more comprehensible procurement practice for both contracting authorities and suppliers. But this must be done while retaining the principles of green procurement and the emphasis on sustainability, so as not to create a regression in the environmental criteria already introduced. Simplifying procurement and integrating sustainability principles are not in conflict — on the contrary, they can and must be combined in a single, intelligently structured system.
Green public procurement — an instrument for delivering sustainable development goals and strengthening the local economy
The aim of promoting green procurement is to reduce the environmental impact of the goods, services and construction works bought through public procurement across their entire life cycle, while at the same time fostering the market for environmentally friendly goods and services and raising the competitiveness of the local economy. It is part of delivering United Nations Sustainable Development Goal No. 12 "Sustainable consumption and production", where target 12.7 specifically calls for the promotion of sustainable public procurement; by making use of the opportunities offered by public procurement, Latvia strengthens environmental protection, sustainability and the development of innovation. This approach is put into practice by ensuring that green public procurement is applied. Creating steady demand from the public sector is an instrument that has a positive effect on supply and encourages sustainable business.
Businesses have adapted to the green course, investing in technologies and solutions in order to meet environmental and social requirements. By changing the rules of the game now, the state risks losing this progress and reducing the return on companies' investments.
Inese Pelša, Chair of the Board of the Latvian Sustainable Procurement Association, stressed:
"Green procurement is described as procurement done intelligently. Our task is to preserve that direction — so that procurement is both efficient and sustainable. Sustainability is not only environmental protection, but also the country's long-term competitiveness, the strengthening of local business and the well-being of society. Green procurement also offers a way to deliver national security goals — by supporting short supply chains and local producers, we not only encourage local enterprise but also strengthen the country's resilience to external shocks."
It was emphasised during the discussion that green public procurement is not merely a technical procedure. It is a concrete policy choice through which environmental protection, climate goals and circular economy principles can be integrated. GPP makes it possible to ensure that public procurement is not just about the cheapest tender, but is based on quality outcomes that benefit society over the long term, and it can also boost local enterprise.
One of the most significant risks highlighted by participants is the effect that abolishing GPP would have on local companies. If there is no legal obligation to observe green procurement requirements, contracting authorities — especially under pressure to secure the lowest prices — might drop the criteria that currently protect local and organic food producers.
"For our part, I can say that the GPP system needs to be strengthened further and its positive long-term impact on the economy explained in more detail. We want all the parties involved to understand how important local food producers are. How important it is to ensure a decent share of local produce in catering, and thereby support our own country's economy," stressed Guntis Gūtmanis, Chair of the Board of the Council of Agricultural Organisations Cooperation.
Raivis Bahšteins, representative of the Latvian Organic Agriculture Association:
"Reducing the administrative burden and simplifying procurement are to be supported, but not by watering down requirements in areas that affect the environment and public health, especially children's health. The requirements and controls of the existing green public procurement framework should be improved, not the system torn down just as it has begun to prove itself. Repealing the requirements would be an economic blow to the organic sector and would run counter to the government's action plan. Abandoning green public procurement requirements also puts at risk the investments made by companies that have developed processing lines for organic products. If these requirements are replaced by voluntary guidelines, the losers will be not only local producers but society as a whole — procurement will be dominated by cheaper tenders of lower quality."
Edijs Kupčs, Chair of the Board of the Latvian Association of Construction Companies, pointed out: "Construction is one of the most important sectors in which GPP is able to bring sustainable innovations and technological solutions to life. If GPP requirements for third-group buildings were repealed, the sector would lose clear rules on energy efficiency, emissions calculations and the assessment of material impacts. Such requirements currently serve as a development framework for both contracting authorities and companies in the sector, and removing them could reduce readiness to adapt in good time to climate neutrality requirements that will become mandatory in the future — from 1 January 2028, all new public buildings will have to meet the zero-emission building standard. We cannot afford to weaken the development of sustainable construction — with any amendments to the Public Procurement Law, it must be ensured that the public sector retains and strengthens its role as a good example and a driving force in introducing sustainable construction. At the same time, we recognise the need to review the existing rules and how usable they are in practice, so that they become more effective and less bureaucratic without losing their sustainability purpose. By retaining the GPP framework and working to improve it, we strengthen the sector's competitiveness and its ability to shift to sustainable solutions, which will matter both in the local market and internationally."
Laila Gercāne, Head of the Development and Projects Division of the Vidzeme Planning Region:
"Green public procurement is an essential instrument for fostering sustainable and economically viable development in the Vidzeme region. By choosing a procurement strategy that prioritises environmentally friendly products, services and technologies, local governments and state institutions not only help reduce the ecological burden but also stimulate sustainable local enterprise and innovation. What is more, green procurement helps educate the public about the importance of sustainability."
Although the MoF and PMB representatives stressed the aim of simplifying the procurement system and reducing bureaucracy, it became clear during the discussion that the proposed "radical scenario" as it stands offers no way of revising the aims of procurement so that green public procurement would become a primary rather than a secondary objective. Participants were united in the conviction that these aims are not mutually exclusive — it is possible both to simplify the system and to preserve its strategic orientation towards sustainability. The next and final meeting of the working group was scheduled for 4 June, at which it was due to decide how to take the scenarios forward.
GPP should be regarded as an important instrument of national policy, whose core elements — environmental friendliness, social responsibility and the assessment of economic advantage — help ensure that public funds are spent wisely and thoughtfully. The criteria can be revised to make them simpler to apply, but without losing their very essence: serving the long-term interests of society.
"This conversation confirmed that we share a common goal — to make the procurement system more efficient and simpler. At the same time, it is essential that this development rests on shared values: responsibility towards the environment, care for the well-being and health of society, the strengthening of local enterprise, and a commitment to meeting climate goals and promoting the circular economy. Only on such foundations is it possible to build intelligent, efficient and sustainable procurement practice," stresses Inese Pelša, Chair of the Board of the Latvian Sustainable Procurement Association.
The Latvian Sustainable Procurement Association greatly values the opportunity to come together in dialogue with the responsible institutions and underlines its readiness to continue this cooperation, so that together they can build an efficient, simple and sustainable procurement system that matches Latvia's strategic goals and the interests of society.
By 4 June, the Latvian Sustainable Procurement Association will prepare a consolidated set of proposals to be submitted to the working group and the responsible institutions, calling for GPP to be retained — even under the "radical scenario" — as a mandatory, easily applied and strategically important instrument that serves the long-term interests of society.