NWA grant for research into how governments could be trendsetters in circular procurement
Solving Clashes between Circular and Legal Principles in Public Procurement

Governments seem to be in a good position to lead the circular transition. They can use their tremendous buying power to change production processes, by making circularity demands part of the tenders that they put out to market, and select contractors accordingly. However, the rules and regulations of public procurement are often perceived to hinder this approach. Risk-averseness (the wish to avoid legal challenges) and a lack of knowledge (how to develop robust circular criteria) lead governments in practice to stay on the ‘safe side’ and continue to do business as usual. The CIRCLASH project aims to better understand these (perceived) clashes between circular principles and the existing legal framework, and overcome them by establishing circular procurement criteria and making proposals for legislative amendments, working close together with public authorities and market players.
Public procurement is heavily regulated in the EU and the Netherlands, but the laws are not made with the circular transition in mind. In contrary, the rules were designed to ensure efficient spending of tax payers’ money and to achieve an internal market through competition (creating a so-called level playing field). In practice this boils down to choosing for the bids that offer ‘the lowest price’, favouring companies who work according to the obsolete (yet still accustomed) economic model, where external production costs – such as carbon emissions, environmental pollution, poor labour conditions – are not budgeted for and are passed on to society instead.
By comparison, circular alternatives often include relatively high transaction costs and insufficient scaling opportunities. To stand a chance against ‘mainstream’ bidders, other criteria should also be taken into account, for instance looking at life-cycle costs instead of short term costs. But there is a lack of knowledge and awareness in governments about the specific demands of circular procurement, which makes them become risk-averse due to potential legal challenges. Public authorities must ensure equal, transparent, and proportionate procurement procedures, which does not fit well with circularity.
Potentially interested market parties, on the other hand, are equally affected by the uncertain legal framework, and are hesitant to bid for circular contracts with unclear project expectations, where it is uncertain if and how they can comply with ‘vague’ circularity demands. For both sides – public authorities and private enterprise – resolving this stalemate position is essential to move the circular economy forwards and start developing adequate circular procurement criteria and contract clauses.
The project aims to understand and resolve these clashes between circular principles and legal principles (‘CIRCLASHES’) and proposes solutions to overcome them, with the involvement of experts in circularity, law and transitional thinking from Utrecht University and other universities, in collaboration with key stakeholders in Dutch public procurement (see box below).
Co-creating with societal partners
The research ‘Governmental Trendsetters: Solving Clashes between Circular and Legal Principles (CIRCLASH)’ is conducted at the Utrecht University Centre for Public Procurement. It will be led by prof. Willem Janssen, in close cooperation with prof. Elisabetta Manunza, prof. Fredo Schotanus and dr. Anne Rainville. The research is linked to Utrecht University’s research group Towards a Circular Economy and Society (part of the university-wide programme Pathways to Sustainability).
An important aspect is co-creation with government and market partners: Province of Utrecht, Bureau Inkoop Zuid-Oost Brabant (Bizob), UMC Utrecht and Kenniskring Aanbesteden.
This research is funded by the Dutch Research Council (NWO) as part of the Dutch Research Agenda (NWA). The link between society and science is a key element of the NWA programme: governments, researchers and civil society organisations working together to develop and use knowledge.