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New ESG criteria in public construction procurement

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Starting in 2025, public institutions will be required to meet strict sustainability criteria when awarding construction contracts, in line with the new European rules on green procurement. The European Commission, through DG GROW, has published updated guidelines that mandate the integration of ESG (environmental, social, governance) criteria in bid evaluation, in accordance with Regulation 2023/956 on sustainability reporting.

In Romania, the Ministry of the Environment and ANAP launched in 2024 a pilot program under which 12 contracting authorities implemented ESG requirements in procurement procedures. The criteria include: the carbon footprint of materials, recycling policies, the use of local labor, and equal opportunities. Initial assessments indicate an improvement in the quality of bids and greater openness toward innovative technologies.

Applying these criteria will require adapting administrative procedures and training procurement personnel. According to a 2023 OECD report, only 38% of member states have strong institutional capacities for integrating ESG into public procurement. In Romania, this percentage is estimated at below 20%.

In the medium term, incorporating ESG into procurement may contribute to modernizing the construction sector, stimulating innovative SMEs, and improving the public perception of infrastructure projects. To avoid delays and appeals, it is essential to harmonize ESG requirements with the traditional technical-economic criteria already in use.

(Photo: Freepik)

 

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