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Steelmakers Galvanize Pan-European Push for Greener Public Procurement Norms

Tuesday, May 27, 2025

Synopsis: -Steel giants like Ori Martin, Riva Group, and Euric have launched the “Buy Better to Build Better” coalition at the European Parliament to advocate for reforming EU public procurement rules and promote low-carbon, circular steel usage in public construction projects.

A Formidable Alliance Forms in Brussels

In a decisive move to reshape the environmental footprint of Europe’s public infrastructure, key players from the steel and construction sectors have come together to launch the Buy Better to Build Better, BBBB, coalition. Announced at an event held in the European Parliament in Brussels, the coalition brings together renowned Italian steelmakers Ori Martin and Riva Group, alongside the steel recycling trade association Euric. The coalition aims to overhaul the European Union’s approach to green public procurement, embedding sustainability, circularity, and innovation into the core of how public contracts are awarded.

The coalition’s formation reflects growing concern over Europe’s sluggish transition to low-emission building practices. By reforming procurement policies, the group believes that public sector demand can become a powerful force in decarbonizing the steel industry, one of the continent’s most emissions-intensive sectors.

 

Rewriting the Rules of Public Procurement

At the heart of the BBBB initiative is a call to fundamentally revise EU public procurement directives. The group’s manifesto proposes harmonized and horizontal procurement rules that move beyond mere price considerations. Instead, it urges a framework where environmental impact, material circularity, and innovation take center stage.

Currently, over 50% of public contracts in the EU are awarded based predominantly on the lowest price, often ignoring the embedded carbon footprint or the long-term environmental consequences of chosen materials. The BBBB coalition sees this as a missed opportunity. If public procurement is reimagined as a lever for sustainability, the coalition believes it could unlock faster adoption of low-carbon construction solutions and help scale up the production of environmentally friendly materials.

 

15% of GDP Holds Transformative Potential

The economic rationale behind the BBBB initiative is striking. Public procurement across the EU accounts for a staggering 15% of the bloc’s GDP, equivalent to around $2.15 trillion. This purchasing power, if channeled strategically, could be used not just to build infrastructure but to shape markets, drive innovation, and strengthen European competitiveness.

The manifesto points out that strategic public spending could stimulate demand for green steel, encouraging producers to invest in climate-friendly technologies. As demand scales up, prices would drop, making sustainable materials more affordable and accessible for both public and private construction projects. The coalition is confident that this virtuous cycle can be triggered by policy intervention at the procurement level.

 

Construction Sector Under the Green Microscope

The construction sector stands to be most affected by this policy shift. According to Eurostat, 31% of overall construction spending in the EU is linked to public procurement, and the sector accounts for 11% of the bloc’s total greenhouse gas emissions. Given the volume of steel used in public buildings, roads, and infrastructure projects, targeting procurement policy is a direct way to influence emissions reduction.

The BBBB coalition envisions a future where circular construction principles become mainstream. That means prioritizing materials that are not just low in CO₂ emissions during production, but also recyclable or reusable after the building’s lifecycle ends. By embedding these principles into procurement directives, the coalition argues, the EU can promote a truly circular economy while meeting its Green Deal climate targets.

 

Steelmakers Push for Policy-Triggered Demand

Carlo Beltrame, chief business development officer of Italian steelmaker AFV Beltrame, strongly supports the coalition’s objectives. In an interview with Kallanish, he emphasized that the first demand for truly green steel will come from the public sector.

"Over the next two years, several things will change, not just from the steelmaking point of view, but also from the financial institutions' perspective. We will start to see a heightened sensitivity towards embedded emissions," Beltrame explained. He noted that although the market for low-carbon steel is still in its infancy, rising demand from government projects will catalyze the emergence of financial incentives and premium pricing structures for eco-friendly steel.

As of now, green steel producers face higher production costs without receiving any reward or price premium in return. This imbalance discourages investment in low-carbon technologies like hydrogen-based direct reduction or electric arc furnaces powered by renewable energy. The BBBB coalition believes policy is needed to bridge this gap and make the economics of green steel more viable.

 

Recyclers Step into the Spotlight

The inclusion of Euric, a prominent European association representing the recycling industry, underlines the coalition’s commitment to circularity. Euric advocates for increased use of recycled steel and standardized EU-wide tracking systems to monitor green procurement practices.

The BBBB coalition proposes not only technical criteria for materials but also a centralized tracking framework to ensure that GPP efforts are measurable, comparable, and enforced across EU member states. This would prevent greenwashing and help public authorities evaluate suppliers on transparent and objective sustainability criteria.

Furthermore, recycled steel has far lower embedded emissions compared to primary steel production. Promoting its use through procurement incentives could lead to immediate carbon reductions in upcoming infrastructure projects.

 

Political Timing May Work in BBBB's Favor

The launch of the BBBB coalition comes at a strategic moment, with the European Commission scheduled to review the current procurement directives soon. Early signs suggest that members of the European Parliament are open to proposals that align with the EU Green Deal and Fit for 55 targets.

The BBBB's campaign could influence how new directives are shaped, especially if policymakers are persuaded by the coalition’s argument that sustainable procurement is not only an environmental necessity but also an economic opportunity. By mandating greener building materials, public procurement could set off a wave of innovation, job creation, and industrial renewal across Europe’s steel sector.

 

Green Public Procurement as an Industrial Strategy

For the BBBB coalition, this is about more than climate targets. It’s about using public spending to modernize Europe’s industrial base. If governments can show sustained demand for low-carbon materials, businesses will have the confidence to invest in greener technologies and supply chains. Eventually, this could shift the EU’s industrial trajectory toward one that is not only globally competitive but also aligned with its climate obligations.

The coalition is hopeful that their collective voice, backed by firms who operate at the core of Europe's manufacturing and construction ecosystems, will prompt policymakers to act boldly. They argue that sustainable procurement should not be seen as a niche or costly option, but as the default mode of building Europe’s future.

 

Key Takeaways:

  • The Buy Better to Build Better coalition, featuring Ori Martin, Riva Group & Euric, calls for reforms to EU procurement laws to prioritize sustainability.

  • Public procurement makes up 15% of EU GDP and 31% of construction spending, and is responsible for 11% of the EU’s total greenhouse gas emissions.

  • Steelmakers warn that without policy-led demand for green steel, current producers will lack the economic incentive to invest in low-carbon technologies.

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