Public procurement, subsidies and tax exemptions

In the same way that tariffs have been used as policy instruments to reduce carbon emissions, public procurement, subsidies and tax exemptions can be used to facilitate the importation of sustainable goods needed to support the transition to a low-carbon economy. Public procurement programs can be tailored to include provisions to facilitate the import of carbon-efficient goods when equivalent products are unavailable domestically and in the absence of plans to develop local production. This can be supported by introducing a “sustainability lens” that includes requirements to favour the sourcing of low-carbon products and services in all public procurement biddings. Examples of public procurement measures included in reviewed NDCs range from the public acquisition of LED light bulbs to electric or hybrid vehicles and energy-efficient appliances.

Sustainable Development Goals:

Affordable and Clean Energy

Industry, Innovation and Infrastructure

Climate Action