Economic incentive mechanisms for eco-labelled suppliers in public procurement

Abstract

Over the past decade, public procurement has increasingly been recognized as a strategic tool for promoting
the transition to a green economy. International experience from the OECD, the European Union, Japan, and South Korea
demonstrates that eco-labeling and targeted institutional incentives significantly enhance the environmental effectiveness
of public procurement. In Uzbekistan, reforms implemented between 2019 and 2023 have laid the initial legal and strategic
foundations for green public procurement. However, the application of environmental criteria remains largely voluntary,
and institutional mechanisms require further development.
This study analyzes national reforms in light of international best practices and proposes a set of measures to strengthen
Uzbekistan’s public procurement system. Key recommendations include integrating eco-labeling as a mandatory or
prioritized criterion, providing financial incentives, eliminating additional guarantee requirements for certified participants,
building institutional capacity and establishing monitoring systems to evaluate environmental and economic outcomes.
Implementing these measures is expected to accelerate Uzbekistan’s transition to a sustainable economy, support local
green producers, and optimize long-term socio-economic and ecological benefits.