Public Procurement. Energy Efficiency. These are not terms that one normally sees together. And honestly, neither is a subject likely to keep many people awake at night. But taken together, they can be a powerful force for energy security, greenhouse gas mitigation, and low carbon development.
The logic is simple. Governments on average account for 2-5 percent of national energy use, and this can rise to 20-30 percent in countries with high heating demand or low electrification rates. Between 12 and 20 percent of a country’s gross domestic product passes through public procurement systems. On both the energy and the procurement sides, government actions matter, influencing private sector purchasing and individual decision-making. Technical specifications used by governments also send signals to suppliers about the types of goods and services that will be in demand, which in turn can influence the products they produce.