2.3.6 Using Government Procurement to Support Innovation

Model Green Termination Provision

A model standard clause in merchant-customer contracts that allows a right of termination for a customer so that they can pivot to a greener supplier to meet their sustainability, climate or other environmental objectives.

EO 13693

In 2015, Executive Order 13693 put in place specific sustainability and energy efficiency goals in federal purchasing decisions. It was revoked in 2018 by EO 13834.

Environmentally Preferable Purchasing Program

The federal government has operated an Environmentally Preferable Purchasing Program for several decades under the 1990 Pollution Prevention Act, which focuses federal procurement programs on clean technologies.

IISD report, Procurement, Innovation, and Growth

Contends that public procurement serves as a key policy tool for governments to act as a market supporter and catalyst, incentivizing businesses to take the risks to invest, innovate and commercialize green products and services.