Posters
Come meet the poster presenters to ask them questions and discuss their work
We would like to invite you to come and see the posters at our upcoming conference. The posters will showcase a diverse range of research topics, and will give delegates an opportunity to engage with the authors and learn more about their work. Whether you are a seasoned researcher or simply curious about the latest developments in your field, we believe that the posters will offer something of interest to everyone. So please join us at the conference and take advantage of this opportunity to learn and engage with your peers in the academic community. We look forward to seeing you there!
PO056: Prequalification ESG criteria in critical infrastructure tenders
Marie Louise Gammelgård-Larsen, Deputy Director, Kaya Partners
Abstract
In an era of increasing geopolitical tension, the EU has begun to realise that the security of EU critical infrastructure supply chains and strategic autonomy must be protected. EU and national tendering processes have been designed to favour lowest-price bids, but are increasingly including solid non-price criteria. For starters, EU in 2022 updated State Aid Guidelines for Climate, Energy, and Environment to allow governments to incorporate up to 30% non-price criteria in auction selection. The idea behind these criteria is to favour bids where European bidders are stronger, in areas like sustainability, social and labour rights, and biodiversity. However, this risks turning into a bidding 'beauty contest' that continues to favour lowest-cost bids, as price still makes up 70% of the bid weight. We explore and discuss the practical implications of member states redesigning offshore wind tenders to include a prequalification round that incorporates binary ESG criteria aligned with EU strategic priorities like climate goals and social equity. This would eliminate bidders operating with forced labor or cheap fossil fuels before they reach the bidding stage, thereby leveling the playing field for companies that operate sustainably and equitably but have higher operational costs. While the implementation of ESG criteria in tendering processes is still nascent, we propose a framework to conceptualise how tendering criteria for critical infrastructure, including renewable energy projects, could evolve to serve national security and strategic interests while protecting vulnerable European industry.
