Green procurement

Green procurement in the federal government means purchasing environmentally preferable goods or services — ones with a lesser or reduced impact on the environment over their life cycle compared with competing goods or services serving the same purpose. It is governed by the Treasury Board Policy on Green Procurement, in effect since April 1, 2006, with changes incorporated as of May 14, 2018.

What the policy is

The Policy on Green Procurement, issued by the Treasury Board of Canada Secretariat, requires that procurement of goods and services actively promote environmental stewardship. Its objective is to advance the protection of the environment and support sustainable development by integrating environmental performance considerations into procurement decision-making. The policy is set within the context of value for money and a life-cycle management approach: buyers are expected to consider the whole life of what they acquire — planning, acquisition, use and disposal — including total cost of ownership, not just the purchase price. It applies to all departments within the meaning of section 2 of the Financial Administration Act, unless specific acts or regulations override it.

What it requires of buyers

Under the policy, deputy heads are accountable for integrating environmental stewardship and life-cycle principles into procurement planning and practices, including the government's supply chain. Concretely, departments must establish management processes and controls to identify environmental risks, set green procurement targets tailored to their mandates and buying patterns, buy environmentally preferable goods and services where value for money is demonstrated, train officials in key procurement and materiel positions, and monitor and report on green procurement performance through the annual Departmental Plan and the Departmental Results Report or the Departmental Sustainable Development Strategy. PSPC guidance on canada.ca also requires all contracting authorities to follow the specific standards issued under the policy and to include general environmental considerations across procurement planning, acquisition, and disposal stages.

What it means for suppliers

Environmental requirements increasingly appear inside solicitations, not just policy documents. Two verifiable examples from CanadaBuys: the Standard on the Disclosure of Greenhouse Gas Emissions and the Setting of Reduction Targets, issued April 1, 2023, applies to procurements over $25 million CAD including applicable taxes and options — buyers can address it through mandatory or point-rated evaluation criteria, and are told to consider applying it between $1 million and $25 million based on market readiness. Separately, the Greening Government Strategy's 2024 life-cycle assessment commitment requires suppliers to provide GHG life-cycle assessment reports as deliverables for procurements valued at or over $25 million, effective April 1, 2025. Buyers also use ecolabels, recycled-content requirements, energy-efficiency criteria and packaging take-back clauses. Suppliers who can document environmental performance — certifications, GHG disclosure, recycled content — have a concrete answer when those criteria appear.

Common questions

Is green procurement the same as the Greening Government Strategy?

They are related but distinct. The Policy on Green Procurement is the Treasury Board policy governing purchasing decisions. The Greening Government Strategy is the broader Government of Canada directive covering operational carbon, net-zero buildings, zero-emission vehicles and more — green procurement is one of its instruments, alongside the Directive on the Management of Procurement and the Federal Sustainable Development Strategy.

Do small contracts have green requirements?

The $25 million thresholds above apply only to GHG disclosure and life-cycle assessment deliverables. Environmental criteria in general — ecolabels, efficiency standards, packaging — can appear in solicitations of any size whenever the buyer determines they are feasible, so small suppliers should read solicitation documents for environmental clauses rather than assume size exempts them.

Related definitions

Tender notice · Standing offer · Supplier eligibility