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Environmentally Sustainable Procurement Policy

The Environmentally Sustainable Procurement Policy (ESP Policy) becomes effective from 1 July 2024 and applies to all non-Corporate Commonwealth entities and prescribed Corporate Commonwealth entities listed in section 30 of the Public Governance, Performance and Accountability Rule 2014. Other Commonwealth entities are encouraged to apply the ESP Policy and contribute to the environmental aims of the policy.

The ESP Policy focuses on environmentally sustainable procurement to support the Commonwealth Procurement Rules’ value for money considerations, and Australia’s transition to a net zero and circular economy. The Policy is administered by the Department of Climate Change, Energy, the Environment and Water (DCCEEW).

  • From 1 July 2024, construction services procurements at or above $7.5 million (incl GST) are within scope of the Policy.
  • From 1 July 2025, procurements for ICT goods, Textiles, Furniture, fittings and equipment at or above $1 million (incl GST) are within scope of the Policy.

The ESP Policy model clauses contain:

  • Approach to market clauses
  • Contract clauses.

The use of the ESP Policy model clauses will ensure approach to market processes and contracts meet both ESP Policy and CPR requirements.




Disclaimer: This does not purport to be comprehensive or to render legal advice. You should not act based on any information contained in this publication without first obtaining specific professional advice. Consult your legal advisor to determine if this applies to you.”

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