Resources for Green Procurement

How Oslo Uses Procurement to Cut Greenhouse gas emissions

Oslo has transformed procurement into one of its most effective climate tools. Every city buys goods, services and construction works. Oslo’s experience shows that cities that set climate requirements in their procurement criteria can reduce emissions, while also influencing markets and accelerate the transition towards greener businesses.  Public actors hold significant market power and can use their purchasing decisions to create demand for greener solutions.

By implementing standardized climate and environmental requirements in its procurements, Oslo has reduced emissions in sectors that are traditionally perceived as hard to decarbonize. Nearly all municipal construction sites in Oslo now operate without CO₂ emissions. This shift happened quickly. In 2019, Oslo stated that all public works commissioned by the city should be zero‑emission by 1 January 2025.  And: by 2025, roughly 94 percent of energy use at municipal construction sites in Oslo was carried out with zero emissions machinery.

Oslo also leads globally on vehicle electrification.  Over 90% of new private car sales were zero emission in 2025. Public transport (trams, metro, ferries) largely run on electricity. Before 2019, almost none of the city’s deliveries were delivered with zero‑emission transport. Since standardized requirements on transport were introduced in 2019, suppliers have invested in zero emission fleets across all sizes, with spillovers to non‑municipal clients.

Oslo’s approach has delivered benefits beyond climate, including quieter construction sites, improved local air quality and increased market availability of zero-emission solutions.

This page outlines Oslo’s approach, the enabling conditions that made standardization possible, and how the city developed and introduced contract and tender requirements. While some of the conditions are unique to Oslo, procurement is a practical tool any city can use. We hope Oslo’s story can guide others, with lessons adaptable to different contexts.

Why Public Procurement Is Key to Urban Decarbonization

As one of Norway’s largest public procurers, Oslo has significant purchasing power, but the principles the city has used can also be applied by smaller municipalities. The city purchases goods, services, construction works and supplies across all its core responsibilities—such as providing food for kindergartens and nursing homes, construction and renovation of public buildings, delivery of public transport services, and delivery of office supplies. These purchases carry a substantial carbon footprint.

Traditionally, procurement decisions  have focused on securing the right product or service at the right price, while ensuring quality and legal compliance. However, Oslo has redefined procurement as a strategic lever for climate action.

The city’s ambitious climate strategy, with its target of 95% direct emissions reduction, requires action across all areas, and procurement became one of the City’s key tools to cut emissions.

At the beginning Oslo focused on the largest sources of direct emissions: public construction and transport of goods and services within city boundaries. In 2019, Oslo set clear, ambitious and standardized procurement criteria in these two sectors, signalling that even stricter standards would followBy mandating a shared framework across agencies, Oslo ensured consistency and predictability. Today,  the city continues to expand climate criteria to new sectors.

The impact has been substantial: Oslo reduced its own direct emissions and influenced the wider local market. Suppliers invested in cleaner technologies to meet city‑wide requirements, with positive spillovers into non‑municipal projects.

Procurement Strategy: The Strategic Foundations for Climate‑Friendly Procurement

Oslo’s approach rests on several strategies and political decisions, among them the 2017 Procurement Strategy, which emphasised that the city should use procurement as a strategic tool to accelerate the green transition, achieve its climate goals, and promote circular economy principles. The strategy also encouraged standardized solutions so agencies could focus on core delivery while applying environmental requirements consistently.

Oslo’s strategy thus reframed procurement as a driver of sustainability and standardized execution. It aligned procurement with the city’s climate ambition and tied these actions to budget processes, political follow‑up and systematic reporting. The city’s climate strategy also reiterates this link.  Oslo’s climate targets created a clear direction for the municipality and established procurement as one of the tools for achieving those goals.

Long-term political commitment also gave suppliers confidence that new requirements would remain in place over time. Oslo’s procurement strategy has since been updated with clear aims for greenhouse‑gas reduction towards 2030.

How Standardization Changed the Market in Construction and Transport

Oslo has a decentralized procurement system. Before 2019, climate requirements in procurements varied by agency, which meant that suppliers faced uncertain expectations and fragmented demand, making investments in climate friendly solutions risky. As standardization emerged as a strategic tool to reach climate goals, offering predictability, simpler administration for both city and suppliers, and a phased approach that signalled direction and allowed actors time to adapt.

Oslo started this work in sectors where the city had more control and capacity to follow up. The city identified categories with the highest greenhouse‑gas emissions, building and construction and transport of goods and services and prioritized these for standardized requirements.

The process of defining standardized requirements was deliberate and stepwise and predates the procurement strategy. As early as 2016 the city established pilots within construction and transport, to explore feasibility, including fossile‑free requirements (biodiesel) in four kindergarten builds. From 2017, fossil‑free became a minimum requirement in city projects. And in preparation for the market to shift towards zero-emission machinery, Oslo’s municipal developer required tenders to use electric machinery if/when these existed in the market. In 2019, a pilot in downtown Oslo hosted the world’s first fully zero‑emission construction site. The municipality even rented electric machinery and required contractors to use it—proving feasibility and building confidence.

By 2019, the city had gained sufficient experience, and the City Government adopted standardized climate and environmental requirements. These became mandatory for:

• all procurements where delivery involves transport, and
• all building and construction services.

Standardized requirements created reliable demand for zero‑emission machinery and vehicles, simplified tender administration, and replaced one‑off experiments with binding, city‑wide standards—making climate goals more credible.

From Incentivizing to Requiring Zero‑Emission Solutions

In early tenders ([OPPDATER årstall]), zero‑emission options were rewarded but not required, giving innovators an edge. As the market developed, Oslo required fossil‑free fuels as a minimum while awarding additional points for zero‑emission machinery.

Once market dialogue showed at least three suppliers could deliver zero‑emission options in transport of goods/services, Oslo introduced minimum requirements via technical specs or contract performance conditions ([OPPDATER årstall]).

In October 2019, the City Government adopted standardized requirements for all public building and construction procurement, informed by pilots and dialogue. Crucially, Oslo announced early that by 2025 all publicly procured construction work must be zero‑emission, and that for transport of goods/services zero‑emission or biogas vehicles would be minimum requirements by 2025—giving the market five years to prepare.

Building Trust Through Transparent Supplier Engagement

Market dialogue has been a central part of Oslo’s approach. Before introducing new requirements, Oslo actively engaged suppliers. This was done in various ways, through RFIs (Requests For Information), supplier meetings, one‑to‑one sessions and draft tender consultations. These conversations help the city understand market readiness while giving suppliers time to prepare for future requirements.

Within the area of transport many suppliers had already replaced fleets by 2021, anticipating Oslo’s direction. As one company put it: “We knew we wouldn’t win every contract. But if we invested in electric trucks, we would stand stronger in the future.”

Investing in Charging and Fueling to Match Technology Shifts

Oslo’s investments in emissions‑free technology also created new needs—most urgently for charging facilities. Through the Climate and Energy Fund, Oslo co‑financed charging for cars, heavy‑duty vehicles and construction machinery, plus biogas fueling stations. The scheme supports depot charging and public fast charging in Oslo, filling gaps not covered by national programs and enabling citizens and companies to make climate‑friendly choices. This reduced supplier barriers and showed municipal commitment to emissions free vehicles and machinery.

From Incentivizing to Requiring Zero‑Emission Solutions

Rather than introducing the strictest requirements immediately, Oslo gradually increased ambition as technologies matured. In 2019, the City Government adopted standardized requirements for all public building and construction procurement, informed by pilots and dialogue. In these early tenders zero‑emission options were rewarded but not required. However, Oslo signaled from the beginning that stricter requirements would follow giving suppliers time to adapt and transition, Oslo announced early on that by 2025 all publicly procured construction work must be zero‑emission, and that zero‑emission or biogas vehicles would be minimum requirements for transport of goods/services by 2025—giving the market five years to prepare.

The city began by rewarding climate-friendly solutions through award criteria and pilot projects. In 2025, once market dialogue showed that at least three suppliers could deliver zero‑emission options in transport of goods/services, Oslo introduced minimum requirements via technical specs or contract performance conditions. Crucially, suppliers knew years in advance how the requirements would develop, allowing them to plan investments with confidence.

How to Apply the Requirements Consistently

Developing standardized requirements is only the first step. To ensure consistent implementation, Oslo supports procurers and city staff with common tools, guidance and expertise.

Standardized climate and environmental requirements have been developed for procurement categories with the greatest climate impact, beginning with construction and transport. Applying the same requirements across municipal agencies creates consistency, gives suppliers predictable expectations and helps ensure procurement contributes to the city’s climate goals.

To support implementation, Oslo provides:

• Standard contract clauses that make climate requirements binding throughout the contract.
• Templates and guidancewhen and how to apply the requirements, including market dialogue and contract follow-up.
• Central procurement and sustainability expertise to support agencies with complex procurements and the introduction of new requirements.

The requirements are regularly reviewed and strengthened as markets develop and new technologies become available.

What Made the Transition Possible

Oslo’s procurement model was built over time and supported by a combination of political leadership, clear governance and practical implementation.

Several factors were particularly important:

• Long-term political commitment. Broad political support for Oslo’s climate ambitions provided continuity and gave suppliers confidence that requirements would remain in place.
• Clear governance. The Climate Strategy and annual Climate Budget embedded procurement as a key climate measure, with clear responsibilities for implementation and follow-up.
• Dedicated expertise. Procurement, legal and sustainability specialists worked together to develop, implement and continuously improve standardized requirements.
• Supporting tools and infrastructure. Guidance documents, templates, market dialogue and investments in charging infrastructure helped reduce barriers for both procurers and suppliers.

Oslo’s experience has also been shaped by local conditions. As one of Norway’s largest public procurers, the city has significant purchasing power. In addition, Norway’s electricity system is almost entirely based on renewable energy, making electrification an effective climate measure. As part of the European Economic Area (EEA), Norway also follows the same public procurement rules as EU Member States, making many aspects of Oslo’s approach relevant across Europe.

As an early adopter of zero-emission procurement, Oslo encountered challenges that many cities are likely to face. Rather than waiting for perfect market conditions, the city adapted its approach as technology and markets evolved.

Building market confidence: When Oslo introduced its first climate requirements, zero-emission construction machinery and heavy vehicles were still limited and expensive. The city addressed this by introducing requirements gradually, signaling future standards well in advance, and using pilot projects to demonstrate that new technologies were viable. This gave suppliers confidence to invest and helped accelerate market development.

Electric capacity: The transition to zero emission construction and transport increased demand for electricity. Oslo responded by assessing future power needs and planning for charging infrastructure and providing procurers with information on available grid capacity.

The procurement agency clarifies available grid capacity in tenders so all bidders can plan their charging solutions efficiently and compete on equal terms. Including grid info also reduces the need for individual dialogue with grid operators, and speeds up procedures.

Supporting the transition:  Oslo recognized that procurement requirements alone would not be enough. Through the Climate and Energy Fund, the city helped finance charging infrastructure for vehicles and construction machinery, complementing national support schemes and reducing barriers to investment. This combination of procurement requirements and enabling measures helped accelerate the transition.

Key Takeaways for other Cities

•  Predictability is key: Set clear long-term goals, standardized requirements and realistic timelines.
• Build ambition over time: Start with achievable requirements and strengthen them as markets mature.
• Focus on high-impact sectors: Prioritize procurement categories with the greatest climate impact.
• Engage the market early: Use market dialogue to understand readiness and shape effective requirements.
• Coordinate across disciplines: Bring together procurement, legal and sustainability expertise, and provide shared guidance and templates.
• Support implementation: Provide guidance, templates, expertise and robust contract follow-up.
• Plan for emerging needs: Anticipate infrastructure, grid capacity and other practical needs.
• Maintain political commitment: Communicate progress and the wider benefits of climate-smart procurement.
• Be prepared to learn and adapt: Pilot new approaches, learn from experience and adjust as technologies and markets evolve.

Questions about standardized climate and environmental requirements in procurement?

Contact klima@okf.oslo.kommune.no