The role of public procurement is rapidly evolving in Europe, increasingly recognised as an engine for driving sustainability and innovation. No longer confined to simply acquiring goods and services at the lowest cost, public procurement strategies in cities are embracing environmental, social and technological aspects that together hold the potential to shape resilient societies at local level for the future.
This is what was discussed during the Big Buyers Working Together (BBWT) Annual Event held on 24–25 March 2025 in Helsinki. The event provided a powerful platform for public officials, experts and innovators from public buyers across Europe to discuss how the procurement can be transformed into a dynamic force for sustainable change. As Anita Poort, Innovation Procurement Policy Officer (DG GROW) highlighted, “Together, public buyers have the opportunity to shape the future of public procurement. They’ll make the difference.”
The role of public procurement in driving sustainability and innovation
At its core, public procurement should be about transforming public expenditure into lasting social, economic and environmental benefits. The BBWT Annual Event in Helsinki brought together public authorities’ representatives of the project’s 10 Communities of Practice (CoPs) with a common aim: to leverage the substantial purchasing power of public authorities to foster innovation, increase sustainability and address pressing social challenges.
As cities embark on ambitious projects, the message was clear: public procurement is not just about transactions but transformation. It is these innovative strategies, which balance cost, quality and impact, that are set to redefine how local governments procure goods and services for the benefit of all.
Together, public buyers have the opportunity to shape the future of public procurement. They'll make the difference.
Bridging gaps and balancing acts
Implementing strategic procurement is not without its challenges. The discussions at the event highlighted several critical hurdles that public buyers face as they attempt to integrate sustainability and innovation into their procurement practices.
One of the primary challenges is the funding gap. As Sami Aherva (City of Helsinki) pointed out, the cost of pioneering new technologies often comes at a premium: “Funding, new technologies, new tools… They cost more than present ones.” Participants noted that while the willingness to innovate is high, securing the necessary financial support continues to be a significant barrier. This gap, as it was argued, can only be bridged by creating more flexible funding mechanisms that allow public bodies to invest upfront in sustainable and innovative solutions that yield long-term benefits.
Another central challenge is striking the delicate balance between innovation and regulatory compliance. Public procurement must adhere to strict rules to ensure transparency and fairness; however, such regulations sometimes conflict with the need to overcome boundaries and experiment with new solutions. Anita Poort encapsulated this dilemma by reminding the audience that “public procurement is not only about buying new goods and services but also about revising traditional business models to stimulate market innovation”. Here, the need for policy frameworks that are agile enough to adapt to technological advances while maintaining high standards is crucial.
Skills and dialogues for smarter procurement
Capacity building is also another key priority for public buyers. Public officials often struggle to keep up with new technologies and evolving best practices in strategic procurement. Valentina Schippers-Opejko (City of Haarlem), raised that “local requirements sometimes go above national mandates, and we need to educate contractors and developers to meet these higher standards”. This highlights a dual imperative: public authorities must not only enhance the skills of their teams but also cultivate a shared, ecosystem-wide understanding of what sustainability and innovation look like in practical terms. Market dialogues should be established, and this would help alleviate some of these challenges.
local requirements sometimes go above national mandates, and we need to educate contractors and developers to meet these higher standards.
As shared by several speakers, effective market dialogues provide a platform for buyers and suppliers to discuss emerging technologies, share best practices, and even boost creativity. However, it is important to ensure that these discussions remain broad and unbiased. As Eeva Riitta Hognas (Finnish Advisory Unit on Public Procurement) recommended, organising market dialogues requires engaging a diverse set of stakeholders and navigating the fine line between collaboration and favouritism. “Consider if you need a market dialogue and set it up”, Eeva-Riita added.
Shaping future priorities
Beyond the operational challenges, public procurement has been rediscovered as a policy tool and it is shaping the EU’s legislative landscape. Legislations such as the clean Industrial Deal, Ecodesign of Sustainable Products Regulation, or the Net Zero Industry Act are injecting new dynamics and possibilities into the procurement process.
The modernisation and simplification of public procurement rules aims at stimulating market innovation across the EU as well as enabling preference to be given to European products in public procurement within strategic areas. This approach, however, has generated spirited debate about its implications on both competition and innovation. While self-sufficiency and security are vital, regulatory measures must also be crafted to encourage a healthy competitive environment that fosters ground-breaking ideas. Flexibility is also another fundamental aspect of public procurement, as one size fits all approach cannot be implemented across all different buyers in Europe and a focus on the outcomes should be prioritised.
Circular economy in action
Study visits were a highlight of the BBWT Annual Event, offering tangible examples of how public authorities are integrating circular economy principles into everyday governance.
In Helsinki, public procurement is used to ensure that sustainability is embedded into the urban fabric. A notable example is the maintenance of the areas surrounding the Helsinki Olympic Stadium. Here, the city has adopted a specialised type of turf designed to significantly reduce environmental impact while maintaining the high-performance standards required by athletic events. This initiative not only enhances the durability of the field but also minimises resource consumption and waste, demonstrating a thoughtful and innovative approach to urban management.
Cities and other public buyers are in the business of making impact. It is important to collaborate on how we want to monitor developments and strategies.
Another study visit took participants to the Inrego facilities in Vantaa, where public administrations in local governments are embracing refurbished IT equipment. This practice supports the circular economy by extending the life cycle of technology and reducing the carbon footprint associated with new device procurement. The shift towards refurbishment is an illustration of a broader trend: in order to promote sustainability, public bodies are rethinking procurement strategies and opting for solutions that are economically and environmentally beneficial over the long term.
The path forward for public procurement in European cities
Public procurement is clearly emerging as a fundamental tool to drive European sustainable and innovative objectives. It is a strategic driver of modernisation within public authorities. As European cities continue to leverage their collective purchasing power, there is every reason to be optimistic about the future. The path forward lies in addressing the upcoming challenges, such as closing funding gaps, updating regulatory frameworks to keep pace with technological advances, and reducing administrative burden. As Sami Aherva put it, “Cities and other public buyers are in the business of making impact. Procurement has a mechanical structure – it needs to be technical. But it is also important to collaborate on how we want to monitor developments and strategies.”
A recurring theme throughout the event was the call for collaboration and collective intelligence. Public buyers are no longer isolated decision-makers; they are a part of a vibrant community united by the shared belief that well-conceived procurement can catalyse significant societal change.
Looking ahead, the integration of innovative solutions will be at the heart of procurement revisions. European cities, equipped with decades of experience in public procurement, are now poised to lead by example. They are actively reimagining procurement practices.
The BBWT Annual Event in Helsinki provided a timely opportunity to showcase the transformation of public procurement, which is evolving into a multifaceted tool for social and environmental good. By embracing the complexities of funding, regulation, capacity building and data management, and by actively engaging in circular economy practices, European public authorities can create a procurement ecosystem that not only meets the needs of today but also paves the way for a more sustainable and innovative future.
Enhancing collaboration
In the given context, the BBWT Project organises a series of hackathon events. Those fast-paced events aimed to boost innovative solutions are a great occasion for public buyers to actively share their challenges and barriers towards the implementation of innovative and sustainable procurement practices. The first in the series of hackathon events will be the upcoming hackathons on ‘Charging and Energy Infrastructure for the Green Transition in transport and construction’, taking place in Oslo, on 13-14 May 2025.
It will provide an unique opportunity to exchange with leaders in the sector, as the City of Oslo, and experimenting real solutions to implement charging infrastructure systems in cities.
More information and registrations available here.
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Big Buyers Working Together (BBWT) is a EU-funded project supporting collaboration between public buyers with strong purchasing power and promoting the wider use of strategic public procurement for innovative and sustainable solutions.
To stay engaged and learn more about sustainable procurement practices, join the Big Buyers Working Together initiative and become part of the Community of Practice on Sustainability in ICT.
