Green Public Procurement in Public Procurement and PPP: The Path Toward Sustainable Development

Introduction

In an era of accelerating climate change and global sustainable development challenges, Public–Private Partnerships (PPPs) are becoming one of the key mechanisms for financing and implementing infrastructure projects that integrate environmental priorities. Green Public Procurement (GPP) is a strategy whereby public tenders and contracts prioritize goods, services, and works that have minimal environmental impact throughout their entire life cycle. In Central Asia—a region vulnerable to water scarcity, desertification, and high greenhouse gas emissions (the region generates about 1.4% of global emissions, dominated by Kazakhstan and Uzbekistan)—GPP in PPPs contributes to the transition to a low-carbon economy, the achievement of the UN Sustainable Development Goals (SDGs), and the attraction of international investment [1].

Figure 1: Share of CIS and Central Asian countries in global greenhouse gas emissions (%). Source: IEA 2024

According to the 2025 report by the Eurasian Development Bank (EDB) and the CAREC Institute, the Central Asian countries (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan) show varying levels of readiness for carbon pricing and green mechanisms, but all face common challenges: dependence on fossil fuels and the need for procurement reform. [1] In Uzbekistan, where GDP per capita at Purchasing Power Parity (PPP) is about USD 5,167 (2025), GPP is integrated into the national “Strategy for Transition to a Green Economy 2019–2030”[1] and ambitious targets to reduce greenhouse gas emissions per unit of GDP by 10% by 2030 compared to 2010 levels [5]. This review analyzes the regulatory framework, integration stages in PPPs, international experience, benefits, and prospects, relying on current data and case studies.

Figure 2: Greenhouse gas emissions per unit of GDP in Central Asian countries. 2000–2020. Source: Ourworldindata.org

Regulatory Framework in Uzbekistan.

Uzbekistan leads the Central Asian region in institutionalizing GPP by integrating it into the broader framework of the green economy. A key document is the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 371 dated June 18, 2025, “On Measures to Improve the System of Supporting Green Public Procurement.” This regulation introduces mandatory environmental criteria in procurement documentation starting January 1, 2026. Key provisions include:

• Mandatory sustainability criteria and supplier preferences:

During public procurement, environmental criteria are mandatorily included in tender documentation for selecting the best offers. Bidders that offer goods, works, or services with ecological certification (or are certified themselves) receive the following preferences:

-    Additional 5% points for each type of ecolabel (e.g., EU Ecolabel or national equivalents); failure to meet criteria does not disqualify bidders—thus maintaining competition.

-    A 30% reduction in brokerage fees;

-    No requirement for bid security deposits.

These measures significantly enhance the competitiveness of environmentally responsible suppliers without reducing overall competition.

• GPP share targets: At least 15% of all procurements in 2026 must meet GPP criteria, with annual increases of 5%, reaching 30% by 2030. These targets align with Uzbekistan’s updated Nationally Determined Contributions (NDCs) [3].
• Priority and incentives: Public purchasers are instructed to prioritize “green” suppliers when choosing providers of goods and services.

Presidential Decree No. DP-110 "On Measures for Participation in the International Carbon Units Market" dated July 7, 2025, establishes Uzbekistan’s participation in the international carbon market under Article 6 of the Paris Agreement.[2]. It provides for the creation of a National Carbon Registry starting in 2026, wherein 80% of carbon units generated from publicly-backed projects (e.g., renewable energy) may be freely sold on international markets; 20% of units are reserved to fulfill national obligations and mitigate overselling risks. This mechanism stimulates public-private partnerships, especially in energy and construction sectors, where revenues from carbon credits can compensate investments in green technologies and projects [5][6].

The regulatory framework for PPPs in Uzbekistan is set by the Law "On Public-Private Partnership" dated May 10, 2019 (Law No. ZRU-537), updated on January 22, 2021 (ZRU-669), which governs interactions between the state and private sector through transparent tenders and procurement processes—but without a direct requirement to include ESG criteria in contracts.

In October 2025, the World Bank approved USD 800 million in concessional loans to support structural reforms in Uzbekistan, including the introduction of GPP to prioritize environmentally friendly goods. The Asian Infrastructure Investment Bank (AIIB) also backed the “Uzbekistan Green and Resilient Market Economy” program (2025), focusing on energy efficiency and MRV (Measurement, Reporting, Verification) systems for carbon markets. Thus, PPPs are being integrated with sustainability principles through international financing and national reforms. [7][8][9]

Regulatory Framework in Central Asia: Comparative Overview

Central Asia demonstrates a fragmented progression in implementing GPP, with Kazakhstan and Uzbekistan leading the way. The table below outlines the key regulations as of 2025:

Table 1: Key Regulatory Acts by Country (as of 2025)

Sources: EDB/CAREC (2025) [1]; OECD (2024) [10]; UNEP (2025) [11]. Kazakhstan leads with its green taxonomy, requiring national standards for GPP, but all countries are in need of harmonization to enable effective cross-border PPP collaboration [1].

Integration of Green Procurement in PPP

The integration of GPP into PPP projects in Uzbekistan follows a multi-phase model tailored to regional realities:

1. Project Preparation: In the technical specifications for solar PPP projects under the ADB’s Uzbekistan Solar Program (targeting around 1 GW capacity, with implementation starting in 2026 through phased construction and financing), comprehensive sustainability criteria are included. These cover the assessment of environmental and social risks throughout the full project lifecycle — from resource extraction to decommissioning. The projects aim to reduce carbon footprints and accelerate the shift to renewables, incorporating international ESG standards (e.g., EBRD and AIIB) and preparing thorough Environmental and Social Impact Assessments (ESIA) and risk management plans [12]
2. Tendering and Evaluation: In both Uzbekistan and Kazakhstan, tenders apply a balanced score approach that prioritizes GPP criteria (energy efficiency, environmental impact). Kazakhstan’s Law No. 106-VIII (2025) enforces anti-dumping rules (bids >10% below average are rejected), while Uzbekistan’s Resolution No. 371 provides bonus points for environmental certifications (ecolabels) [1].
3. Implementation and Monitoring: PPP contracts define Key Performance Indicators (KPIs) such as emission reduction targets (20–30%) and MRV (Monitoring, Reporting, Verification) reporting requirements. Penalties for non-compliance may reach up to 10% of the contract value, while rewards include monetizable carbon credits.

Monitoring in Water Infrastructure

Under the Green Central Asia Initiative (a regional GIZ program promoting sustainable development in Central Asia), Uzbekistan’s water infrastructure is being monitored through digitalization and PPP projects. These include automation of water and energy measurement in irrigation networks. The program focuses on national initiatives like “Sustainable and Resource Efficient Irrigation in Agriculture,” which deploy energy-efficient pumps and monitoring systems in river basins (Kashkadarya, Bukhara, Andijan), supporting transboundary cooperation on the Amudarya and Syrdarya rivers. Regional platforms provide data for reporting, integrate with PPP strategies (e.g., Uzbekistan’s 2022–2026 Water Saving Strategy targeting 7 billion m³ in water savings), and enable robust risk assessments [Source: https://greencentralasia.org/en/2024/12/public-private-partnership-in-action] [1].

1. Incentives: Uzbekistan’s Cabinet Resolution No. 371 dated 18 June 2025 “On Measures to Improve the Green Public Procurement System” (RCM No. 371) outlines a phased implementation of GPP support mechanisms. Starting in 2026, environmental criteria become mandatory in procurement documentation. Public procurers are required to ensure that at least 15% of procurement volumes meet GPP standards in 2026, increasing annually by 5% to reach 30% by 2030. Lack of ecolabel certification will not disqualify participants but will reduce their comparative scoring. Additional points are awarded to those who present valid ecolabel documentation. This policy is integrated into PPP projects and aims to promote sustainability and energy efficiency in public procurement.

The EBRD actively supports PPP development in Uzbekistan, particularly in renewable energy projects, through its 2024–2029 country strategy. In 2025 alone, the EBRD planned investments totaling €1.1 billion for the private sector and infrastructure. As of early 2025, PPP projects worth approximately $28–31 billion are underway in the country, with 90% concentrated in the energy sector — predominantly renewables.

International Experience

According to OECD data from 2024, 38 countries globally now implement Green Public Procurement (GPP) within PPPs as a key decarbonization and infrastructure efficiency tool. These countries integrate environmental criteria into tender documents, offering bonus points for reduced carbon footprint (15–25%), energy efficiency, and use of recycled materials. Leaders in this area include EU countries (Germany, France — with GPP applied to up to 50% of government contracts aligned with ISO 20400 and MRV standards), South Korea, Chile, and Brazil. Uzbekistan is aligning with this trend through Cabinet Resolution No. 371 (dated 18 June 2025), planning to reach 15% GPP in 2026 and 30% by 2030. This is supported by ADB, EBRD, and the World Bank, particularly in PPP projects related to renewable energy and water infrastructure [10].

Netherlands. Since 2011, the Netherlands has required the use of DuboCalc[3] in major infrastructure tenders to assess the lifecycle environmental impact of materials (LCA). In the A4 Delft–Schiedam highway reconstruction project (2016–2025), significant use of recycled materials reduced CO₂ emissions by approximately 15–18%, while delivering budget savings over the asset’s lifecycle. Since 2023, criteria have been tightened to comply with the “Paris Proof” carbon budget, positioning the Netherlands as a global benchmark for GPP integration into PPPs [10].

Canada. Canada implements Energy Savings Performance Contracts to modernize federal buildings in Ottawa and Quebec (2022–2027). These projects achieve energy consumption reductions of 28–35%, budget savings, and creation of new green jobs. The program includes carbon tax rebates to contractors exceeding energy-saving KPIs, incentivizing private sector participation in sustainable infrastructure [10].

Japan. Since 2001, Japan has enforced a Green Procurement Law. As of 2021, PPP infrastructure projects must use 40–60% recycled materials. The Tokyo Bay Dam reconstruction (2017–2024) utilized recycled concrete and steel, reducing emissions and enhancing structural resilience. Monitoring is ensured through the national Life Cycle Inventory (LCI) database and Cradle-to-Cradle certification, enhancing project transparency and sustainability [10] [18].

Kazakhstan. As of January 2025, Kazakhstan’s new Law “On Public Procurement” and national green taxonomy[4] are in force. In solar parks totaling ~200 MW (Zhambyl and Turkestan regions), supported by the EBRD and Masdar, environmental requirements focus on low carbon footprint and high component recyclability — significantly reducing emissions and increasing project resilience [1].

European Union. Under Directive 2014/24/EU and the Clean Energy for All Europeans package, the EU mandates that at least 50% of the PPP project value be evaluated using green criteria. Initiatives such as the Circular ICT Pact promote joint environmentally focused procurement. For Central Asia, the EU has launched Team Europe on Water & Energy (€300 million, 2023–2027), helping transfer EU GPP standards into water and energy PPPs [10][20].

South Korea. South Korea uses the unified KONEPS digital platform to embed green criteria into procurement — with over 31,000 contracts in 2024. From 2025, all PPP projects must use the Korean LCI DB to track lifecycle impacts, helping reduce CO₂ emissions and encouraging sustainable purchasing. These global examples show that GPP integration into PPPs can cut emissions by 15–30% within 3–5 years, save 5–15% in public budgets (e.g., KONEPS saves ~$1.4 billion annually), and boost ESG investment by 3–5 times.

Benefits and Development Prospects

Green Public Procurement (GPP) in Public-Private Partnerships (PPPs) brings multidimensional benefits, supported by both international experience and initial assessments in Uzbekistan and the region:

• Environmental Benefits. The application of GPP in PPP projects significantly reduces the environmental footprint of infrastructure delivery. According to OECD data, countries actively implementing GPP achieve greenhouse gas emission reductions of 15–30% in projects with mandatory green criteria. In Uzbekistan, this directly supports the implementation of its updated Nationally Determined Contribution (NDC) — a 35% reduction in emissions by 2030 compared to 2010 levels. Solar PPP projects with Masdar, ACWA Power, and Total Eren (2024–2025) already demonstrate up to 90% water savings compared to traditional coal power plants, as well as minimized waste through use of recyclable materials and reduced water consumption in production.
• Economic Benefits. GPP in PPPs pays off through lifecycle analysis (LCA), where initial "green premiums" are offset by long-term saving in operation and maintenance. In developed countries like the Netherlands, this results in 5–15% budget savings over 20–30 years of infrastructure lifespan. By 2027, Uzbekistan expects more than $2 billion in additional concessional financing from AIIB, ADB, EBRD, and IsDB for PPP projects with mandatory GPP criteria. Starting in 2026, such projects will be able to monetize up to 80% of carbon credits (ITMO/Verified Carbon Units) on international markets at $8–15 per ton CO₂eq, creating additional revenue streams.
• Social Benefits. Integrating GPP stimulates the creation of green jobs and improves quality of life. International experience from Canada and the EU shows the creation of 100–250 new sustainable jobs per major energy and infrastructure PPP project. In Uzbekistan, solar PPP plants have already created more than 4,000 jobs during 2024–2025, primarily for skilled workers in the renewable energy sector.
• Investment and Reputational Benefits. GPP enhances a country’s appeal to ESG investors and improves its global sustainability ranking. In 2025, Uzbekistan significantly improved its position in international ESG ratings (including S&P Global) due to GPP implementation, carbon regulation, and transparent PPP standards. The volume of green bonds and sustainable funds investing in Uzbek PPP projects grew by more than 4 times since early 2025 compared to the previous period. The ability to export up to 80% of carbon credits generated by PPP projects makes such initiatives the most attractive in Central Asia, drawing blended finance and facilitating technology transfer.

Development Prospects to 2030

1. 2026–2027 – From January 1, 2026, Uzbekistan will introduce mandatory environmental criteria into procurement documentation for public buyers. The target share of GPP is set at no less than 15% of total procurement volume in 2026, with an annual increase of at least 5%. This will allow the launch of the first major PPP projects with a full package of GPP criteria in renewable energy, water treatment, and smart cities — harmonized with international sustainability standards
2. 2028–2030 – By 2030, the GPP share is expected to reach 30% of all public procurement, as outlined in Cabinet Resolution No. 371. A national digital platform for lifecycle analysis (LCA/GPP), tailored to local materials and conditions (similar to the Netherlands’ DuboCalc), is planned for launch, ensuring standardized environmental assessments and transparency of PPP projects.
3. Regional Harmonization – Under CAREC and Green Central Asia initiatives, harmonized GPP standards for Central Asia are being developed, including a unified registry of carbon units (ITMO) by 2030 to facilitate cross-border cooperation and energy exports [1].
4. Forecast – The total volume of green PPP projects in Uzbekistan by 2030 is estimated at $15–20 billion, including 4.5 GW of renewable energy capacity and a “green power plant” program based on PPP. Green procurement will become a mandatory requirement for attracting investment, meeting climate commitments (NDC), and ensuring the region’s long-term economic growth.

Thus, green procurement in PPPs is shifting from a “nice-to-have” to a mandatory and most beneficial condition for investment attraction, climate compliance, and sustainable regional development.

Conclusion

Green procurement in PPPs is shaping a new paradigm of sustainable growth in Central Asia by balancing economic progress and environmental responsibility. In Uzbekistan, Cabinet Resolution No. 371 (June 18, 2025) and Presidential Decree No. UP-110 (March 19, 2024) form a robust policy framework integrating GPP into PPPs to achieve SDGs. International experience (Netherlands, Canada) confirms its effectiveness, while regional reforms (Kazakhstan) amplify synergies. For success, investment in capacity building, monitoring, and strong partnerships is essential — paving the way to a greener future for the region.

Key Regulatory Documents

1. Cabinet Resolution of the Republic of Uzbekistan No. RCM-371 dated 18.06.2025 “On Measures to Improve the System of Supporting ‘Green’ Public Procurement.”
2. Presidential Decree of the Republic of Uzbekistan No. UP-110 dated 07.07.2025 “On Measures to Participate in the International Carbon Market.”
3. Law of the Republic of Uzbekistan “On Public-Private Partnership” (as amended in 2025).
4. New Law of Kazakhstan “On Public Procurement” No. 106-VIII (entered into force 01.01.2025).
5. Presidential Decree No. PP-4477 dated 04.10.2019 “On Approval of the Strategy for Transition of the Republic of Uzbekistan to a Green Economy for 2019–2030.”

Sources:

1. EABR/CAREC. "Carbon Pricing in Central Asia". 2025. https://eabr.org/en/analytics/special-reports/carbon-pricing-policy-opportunities-in-central-asia-and-azerbaijan/
2. AIIB. "Uzbekistan Green and Resilient Market Economy Program". 2025. https://www.aiib.org/en/projects/details/2025/proposed/uzbekistan-green-and-resilient-market-economy-program.html
3. Lex.uz. "Постановление № 371 от 18.06.2025". https://lex.uz/ru/docs/7578132
4. ADB. "Public Procurement Reforms in Uzbekistan". 2025. https://www.adb.org/news/events/public-procurement-opportunities-policy-reforms-uzbekistan
5. Lex.uz. "Указ № УП-110 от 07.07.2025". https://lex.uz/ru/docs/7616216
6. Spot.uz. "Узбекистан присоединится к мировому обороту углеродных единиц". 2025. https://www.spot.uz/ru/2025/07/09/carbon-units
7. EBRD. "Uzbekistan PPP Project Development Facility". https://www.ebrd.com/home/work-with-us/projects/psd/53911.html
8. World Bank. "Advancing Global Integration in Uzbekistan". 16.10.2025. https://www.worldbank.org/en/news/press-release/2025/10/16/first-advancing-global-integration-and-market-transition-uzbekistan-programmatic-development-policy-operation
9. AIIB. "Uzbekistan Green and Resilient Market Economy Program". 2025. https://www.aiib.org/en/projects/details/2025/proposed/uzbekistan-green-and-resilient-market-economy-program.html
10. OECD. "Harnessing Public Procurement for the Green Transition". 2024. https://www.oecd.org/en/publications/harnessing-public-procurement-for-the-green-transition_e551f448-en.html
11. UNEP. "Sustainable Public Procurement". 2025. https://www.unep.org/explore-topics/resource-efficiency/what-we-do/sustainable-public-procurement
12. Проект "Uzbekistan Masdar Solar PV" в рамках программы ADB и AIIB, включая ЕРБР и IFC, с докладами об экологических и социальных оценках, доступными на сайтах АБР и AIIB.

https://www.aiib.org/en/projects/details/2025/_download/Uzbekistan/20250828-PSI-P000677-Uzbekistan-Masdar-896MW-Solar-PV-Facility_vf.pdf

1. Kursiv.media. "What Factors Decide Future of Uzbekistan’s PPP Expansion". 19.11.2025. https://uz.kursiv.media/en/2025-11-19/what-factors-decide-future-of-uzbekistans-ppp-expansion/amp/
2. NRM.uz. "Указ Президента № УП-16 от 30.01.2025". https://nrm.uz/contentf?doc=772413_ukaz_prezidenta_respubliki_uzbekistan_ot_30_01_2025_g_n_up-16_o_gosudarstvennoy_programme_po_realizacii_strategii_uzbekistan_-_2030_v_god_ohrany_okrujayushchey_sredy_i_zelenoy_ekonomiki&products=1_vse_zakonodatelstvo_uzbekistana
3. ADB. "Public Procurement Opportunities and Policy Reforms in Uzbekistan". 2025. https://www.adb.org/news/events/public-procurement-opportunities-policy-reforms-uzbekistan
4. Постановление Президента Республики Узбекистан, от 04.10.2019 г. № ПП-4477 «Об утверждении Стратегии по переходу Республики Узбекистан на «зеленую» экономику на период 2019 — 2030 годов». https://lex.uz/docs/4539506#4542737
5. Дополнительно: OECD GPP Survey (2022); UNECE Policy Briefs (2025).

 

[1] Presidential Decree of the Republic of Uzbekistan No. PP–4477 dated October 4, 2019 “On the Approval of the Strategy for the Transition of the Republic of Uzbekistan to a ‘Green’ Economy for the Period 2019–2030” Source: https://lex.uz/docs/4539506

[2] Парижское соглашение (принято 12 декабря 2015 года на 21-й Конференции Сторон Рамочной конвенции ООН об изменении климата), вступившее в силу для Республики Узбекистан 9 декабря 2018 года, https://lex.uz/pdfs/5075088

[3] DuboCalc — is a software tool designed for the fast and convenient calculation of the sustainability and environmental parameters of project solutions in the field of earthworks, road construction, and hydraulic engineering.

[4] Resolution of the Government of the Republic of Kazakhstan No. 996 dated December 31, 2021 “On the Approval of the Classification (Taxonomy) of ‘Green’ Projects Subject to Financing through ‘Green’ Bonds and ‘Green’ Loans” Source: https://adilet.zan.kz/rus/docs/P2100000996