The State as a Smart Buyer: An Innovative Approach to Ecological Transition
There are several approaches to ecological transition, but one that has been little discussed is the role of the State as a smart buyer. The Brazilian government, along with the states and municipalities, spends around 16% of the country's GDP on public purchases, which is more than the average of rich OECD countries. This huge amount of money circulating every year can be used intelligently to induce green markets and promote ecological transition.
What Happened: Concrete Success Cases
There are two concrete cases that demonstrate the success of strategic public purchases in Brazil. The first is the National School Feeding Program (PNAE), which determines that at least 30% of the resources allocated to school meals are destined for local family farmers. In 2022, this represented R$ 1.6 billion directly allocated to small producers. The second case is the Economic-Industrial Health Complex (CEIS), which produces Covid-19 vaccines in partnership with AstraZeneca, demonstrating the State's ability to use its purchasing power to demand technology transfer and national production.
Why This Matters: The Real Stakes and Those Affected
The use of the State's purchasing power in an intelligent way can have a significant impact on ecological transition. By prioritizing the purchase of sustainable products and services, the government can create markets for the green industry, generate jobs, and reduce dependence on imports. Additionally, the purchase of sustainable products can reduce carbon emissions and protect the soil, benefiting public health and the environment.
The Science Behind It: The Mechanism of Public Purchases
The mechanism of public purchases is simple: the government is the largest buyer in the country and, therefore, has the power to influence the market. By prioritizing the purchase of sustainable products and services, the government can create a demand that induces supply. This can be done through the inclusion of sustainability criteria in bids, such as the use of recycled materials or the reduction of carbon emissions.
Broad Context: How This Compares to Other Events and Trends
The use of the State's purchasing power in an intelligent way is not a new approach, but it is one that has been little explored in Brazil. In other countries, such as the European Union, sustainable public purchases are a priority and have been used to promote ecological transition. In Brazil, there are legal instruments that allow the inclusion of sustainability criteria in bids, such as the New Bidding Law of 2021 and the Brazilian Sustainable Taxonomy.
What's Next: Implications and Open Questions
The use of the State's purchasing power in an intelligent way can have a significant impact on ecological transition, but it is essential that there is a change of mentality in the ministries, autarchies, states, and municipalities. Additionally, it is fundamental that there is clear communication with society about the importance of sustainable public purchases and how they can contribute to ecological transition. Open questions include how sustainability criteria can be included in bids effectively and how the results of sustainable public purchases can be monitored and evaluated.
Conclusion: The Power of the State as a Smart Buyer
The use of the State's purchasing power in an intelligent way is an innovative approach to ecological transition. By prioritizing the purchase of sustainable products and services, the government can create markets for the green industry, generate jobs, and reduce dependence on imports. It is essential that there is a change of mentality in the ministries, autarchies, states, and municipalities and that there is clear communication with society about the importance of sustainable public purchases.
Source / Reference
This analysis was based on two studies by the University of London (UCL): Mazzucato, Spanó and Doyle (2024), “Leveraging Procurement to Advance Brazil’s Economic Transformation Agenda” and Vitral, Reis and Grottera (2026), “Industrial Policies at the Heart of the Ecological Transformation Plan in Brazil”. The original information can be found at: https://climainfo.org.br/2026/08/03/o-estado-como-comprador-inteligente-a-solucao-climatica-que-quase-nao-se-discute/