Social and environmental minimum standards in public procurement

Each year, the state awards contracts worth around 15 percent of Germany’s gross domestic product. With a planned special fund of €500 billion, this spending is expected to rise further in the coming years. A draft bill is intended to make procurement procedures faster and more digital, but it does not include binding requirements for climate protection or social standards. The proposal calls for binding climate limits, recognized sustainability labels, and fair working conditions to become mandatory in future public contracts. It also calls for easier access to public contracts for small businesses and start-ups, and for legal protection for bidders not to be restricted.