Transition of the procurement process to Paris-compatible buildings: consideration of environmental life cycle costing in tendering and awarding

Abstract Purpose The greenhouse gas (GHG) emissions caused by the construction industry account for an enormous share of total global CO 2 emissions. numerous activities therefore continue to reduce remaining carbon budget. One lever reduction these GHG lies in procurement process buildings. For this reason, a model was developed that takes embodied and operational into tendering awarding phase Methods To validate theoretical framework, environmental life cycle costing (eLCC) conducted on single-family house case study, taking external cost Various shadow prices were defined calculation identify changes award decisions. We further investigated results-based climate finance (RBCF) instrument, i.e., emission bonus/malus, demonstrate approach calculating Paris-compatible (PCC) scenarios. Results show decision based (LCC) leads 12% A can be achieved contracts eLCC. However, required within eLCC awards influence are quite high. With development LCA-based bonus/malus system, PCC scenarios determined at sufficient prices, reductions achieved. Conclusions Since implementation LCA LCC is currently not mandatory, context, next step towards buildings must first taken authorities as well policy-makers. application system thus according potential represent innovative sustainable framework adapted process.