Green Procurement: How to Encourage Green Procurement Practices in IDB Funded Projects?

This document provides guidelines for borrowing countries and IDB personnel on green procurement practices, so that Bank’s funded projects will reduce the negative environmental impact of goods, works, services and consultancies being contracted; and, also promote more environmentally sustainable actions. Based on good practices and international standards and trends, the document shows how environmental aspects can be considered in the IDB’s programming cycle and in each stage of the project cycle. It particularly focuses on the procurement process, outlining the elements that should be considered when designing and implementing green procurement. Green procurement is defined as the acquisition of goods, works, services or consultancies whose results have the least possible harmful effects on the environment, human health and safety when compared to other competing and similar acquisitions or, those that make a positive impact on the environment. Various multilateral financing organizations, international organizations and countries have joined the global effort to promote green procurement. This strategic focus, via procurement, seeks to increase efficiency with the smallest possible environmental footprint, while producing energy and even financial savings.