CircularPSP – Driving circular procurement for Europe’s sustainable urban transition

Public procurement represents one of the most powerful but underused levers for accelerating Europe’s circular economy transition. Cities and public authorities purchase vast amounts of goods, services and infrastructure every year, yet procurement processes often fail to support circular business models, resource efficiency and long-term sustainability goals. CircularPSP addresses this challenge by helping public buyers move beyond traditional procurement approaches and adopt practical circular procurement strategies that can transform urban value chains.

The project brings together cities, public procurers, technology providers and circular economy stakeholders to develop innovative procurement frameworks that make circularity operational in real-world public purchasing processes. Rather than treating procurement as a purely administrative function, CircularPSP positions it as a strategic tool for systemic change across urban ecosystems.

What is CircularPSP about?

CircularPSP focuses on enabling public authorities to use procurement as a driver for circular economy innovation and industrial transformation.

The project develops practical tools, methodologies and digital solutions that support cities and municipalities in integrating circular principles into purchasing decisions. This includes helping public buyers assess lifecycle impacts, improve resource efficiency, reduce waste generation and encourage reuse, repair and recycling across procurement processes.

A core objective of CircularPSP is to bridge the gap between public sector demand and market innovation. Public procurement often struggles to incorporate circular criteria because existing procedures are rigid, fragmented or poorly aligned with emerging circular business models. CircularPSP works to overcome these barriers by creating collaborative frameworks between municipalities, suppliers, waste operators and other stakeholders involved in urban service delivery.

The project also places strong emphasis on data-driven decision-making and interoperability. Digital tools and common approaches are developed to help public authorities evaluate circularity impacts, monitor procurement outcomes and support more transparent procurement practices across different urban contexts.

Beyond technical implementation, CircularPSP addresses governance, stakeholder engagement and market uptake. The project explores how procurement policies can stimulate local circular ecosystems while supporting Europe’s broader climate neutrality and sustainability objectives.

Through pilot activities and collaborative procurement approaches, CircularPSP demonstrates how cities can become active enablers of circular industrial and urban transformation rather than passive consumers of products and services.

Why CircularPSP matters

Cities are at the centre of Europe’s sustainability transition, and public procurement has enormous untapped potential to accelerate circular economy adoption at scale. CircularPSP contributes to unlocking this potential by helping public authorities move from fragmented sustainability initiatives towards integrated circular procurement strategies with measurable impact.

By supporting practical implementation, stakeholder collaboration and market-oriented innovation, the project helps create conditions where circular products and services can scale more effectively across Europe. This not only supports waste reduction and resource efficiency, but also strengthens local resilience, industrial innovation and sustainable urban development.

CircularPSP ultimately demonstrates that procurement can become a strategic instrument for enabling circular cities and more sustainable industrial ecosystems across Europe.

This project has received funding from the European Union’s Horizon Europe Pre- Commercial Procurement Programme, under Grant Agreement n° 101092208.

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