Editing IPCC:AR6/WGIII/Chapter-13 (section)

==== 13.6.5.3 Public Procurement and Investment ====

<div id="h3-19-siblings" class="h3-siblings"></div>

National, sub-national and local governments determine many aspects of infrastructure planning, fund investment in areas such as energy, transport and the built environment, and purchase goods and services, including for government administration and military provisioning.

Public procurement rules usually mandate cost effectiveness but only in some cases allow or mandate climate change consideration in public purchasing, for example in EU public purchasing guidelines ( [[#Martinez%20Romera--2017|Martinez Romera and Caranta 2017]] ). Green procurement for buildings has been undertaken in Malaysia ( [[#Bohari--2017|Bohari et al. 2017]] ). a paper cites Taiwan (province of China) green public procurement law, which has contributed to reduced emissions intensity ( [[#Tsai--2017|Tsai 2017]] ). In practice, awareness and knowledge of ‘green’ public procurement techniques and procedures is decisive for climate-friendly procurement ( [[#Testa--2016|Testa et al. 2016]] ). Experiences in low-carbon infrastructure procurement point to procedures being tailored to concerns about competition, transaction costs and innovation ( [[#Kadefors--2020|Kadefors et al. 2020]] ).

Infrastructure investment decisions lock-in high or low emissions trajectories over long periods. Low-emissions infrastructure can enable or increase productivity of private low-carbon investments ( [[#Jaumotte--2021|Jaumotte et al. 2021]] ) and is typically only a little more expensive over its lifetime, but faces additional barriers including higher upfront costs, lack of pricing of externalities, or lack of information or aversion to novel products ( [[#Granoff--2016|Granoff et al. 2016]] ). In low-income developing countries, where infrastructure has historically lagged developed countries, some of these hurdles can be exacerbated by overall more difficult conditions for public investment ( [[#Gurara--2018|Gurara et al. 2018]] ).

Governments can also promote low-emissions investments through public-private partnerships and government owned ‘green banks’ that provide loans on commercial or concessional basis for environmentally friendly private sector investments ( [[#David--2019|David and Venkatachalam 2019]] ; [[#Ziolo--2019|Ziolo et al. 2019]] ). Public funding or financial guarantees such as contracts-for-difference can alleviate financial risk in the early stages of technology deployment, creating pathways to commercial viability ( [[#Bataille--2020|Bataille 2020]] ).

Government provision can also play an important role in economic stimulus programs, including as implemented in response to the pandemic of 2020–2021. Such programmes can support low-emissions infrastructure and equipment, and industrial or business development ( [[#Elkerbout--2020|Elkerbout et al. 2020]] ; [[#Hainsch--2020|Hainsch et al. 2020]] ; [[#Barbier--2020|Barbier 2020]] ; [[#Hepburn--2020|Hepburn et al. 2020]] ).

<div id="13.6.5.4" class="h3-container"></div>

<span id="voluntary-agreements"></span>