Carbon pricing, the pricing of greenhouse gas emissions, can serve as an efficacious, cost-effective and equitable instrument for speeding up the transition to a low-carbon economy. This study examines the options for applying it in procurement/outsourcing of catering, office furniture and textiles. It involves multiplying the carbon footprint of the product or service by a carbon price. For these three product groups, the current approach to reducing carbon emissions is by means of sustainable procurement criteria (Dutch: MVI criteria).
For government procurement departments there are three options for applying carbon pricing to catering, furniture and textiles:
Impact of carbon pricing
The study shows that the figure adopted for the carbon price is of major influence on the effectiveness of carbon pricing as a tool to guide procurement decisions. In many cases, carbon costs represent only a small fraction of the overall cost. With the fifteen products analysed in the product groups catering, furniture and textiles, carbon costs as a fraction of total cost vary between, on average, 1% at 25 €/t CO2, 3% at 100 €/t CO2 and 18% at 700 €/t CO2.
For procurement departments and agencies we recommend:
For Dutch national government we recommend: