Circular Public Procurement in Cities

Every public contract can be leveraged as a catalyst for circular transformation. Circular public procurement considers the whole life cycle of products, promoting durability, repairability, recyclability, and reuse. All European cities and municipalities can use their purchasing power to stimulate market demand for circular solutions and skills, and contribute to achieving climate and resource efficiency goals. 

By embedding circularity into procurement, cities can:

• Stimulate demand for resource-efficient goods and services.
• Support innovation and create opportunities for SMEs and social enterprises.
• Deliver long-term savings through life-cycle costing and reduced waste.
• Develop circular skills across supply chains and industries.

The EIB’s new circular procurement guidance document 

The new guidance document, Circular public procurement in cities (October 2025), published by the European Investment Bank’s Circular City Centre - C3, provides comprehensive guidance for cities to leverage procurement as a strategic instrument to promote circularity. The guide, developed in cooperation with ICLEI Europe and Circle Economy, provides solutions to challenges cities face, such as competition concerns, the lack of political will and professionalisation of public procurers. The guide outlines also how circular considerations can be embedded into existing public procurement procedures, and lists circular criteria that have been used in tenders. It outlines the existing EU legislative framework, including the Net Zero Industry Act (NZIA) and the Sustainable Products Regulation, among others, that support circular public procurement.

Circular procurement in practice

The guide provides examples from 43 cities and regional governments in Europe that have pioneered a circular approach in the procurement of works, goods and services. 

Works: In the construction and infrastructure sector, cities are embedding circular principles throughout design, construction and demolition phases to reduce embodied carbon. Measures such as pre-demolition audits, modular and adaptable design, and the use of secondary raw materials, alongside training clauses to upskill the construction workforce, can be embedded in contracts. For instance, Yliopistonkatu Street in the City of Tampere was Finland’s first circular infrastructure project. Contractors were required to reuse 70% of excavated materials and incorporate 50% recycled asphalt, demonstrating how circular construction can deliver high-quality and cost-efficient results.

Goods: Circular principles can be applied to the purchase of furniture, textiles, and ICT equipment to reduce consumption-based emissions. By prioritising repairability, take-back schemes, and requiring recycled materials, municipalities are stimulating markets for refurbished and recycled products. In Niort, France, the city hall decided to refurbish 350 workstations rather than purchase new furniture to reduce waste, lower costs, and support local businesses.

Services: By rethinking procurement models, cities can enable circular and service-based solutions. By adopting leasing, maintenance, and “product-as-a-service” contracts, cities can extend product lifespans, improving resource efficiency and encouraging suppliers to retain responsibility for performance and end-of-life management. In Riga, Latvia, the city procured interior design and furnishing services that prioritised reuse, second-hand furniture and products for the creation of its first Circular Economy Hub. 

Innovation and SME Participation in Circular Procurement

Circular public procurement not only drives environmental outcomes but also acts as a powerful lever for innovation and SME participation. The guide highlights how cities can leverage existing instruments such as pre-commercial procurement, competitive dialogue, and innovation partnerships to co-develop and pilot circular solutions with suppliers. It also outlines ways that cities can support SME participation in circular public procurement procedures by leveraging the key provisions in EU procurement directives, such as market dialogues, division into lots, and simplified procurement procedures. 

The C3 guide Circular public procurement in cities is written for public procurers and makes a compelling case for how cities through their public procurement can advance their city’s circular transition. 

Read the full guide: Circular public procurement in cities – European Investment Bank, 2025

Discover C3 and its resources on the C3 webpage.