Project
Carbon footprint of the Canadian federal government’s procurement
This report presents a comprehensive assessment of greenhouse gas (GHG) emissions associated with the procurement activities of the Government of Canada over five fiscal years (2020–2021 to 2024–2025)
This report presents a comprehensive assessment of greenhouse gas (GHG) emissions associated with the procurement activities of the Government of Canada over five fiscal years (FY2020–2021 to FY2024–2025). Conducted by CIRAIG for the Treasury Board of Canada Secretariat, the study establishes a government-wide baseline of upstream (Scope 3) emissions embedded in purchased goods and services, supporting federal commitments under the Greening Government Strategy and related policies.
The study aims to identify High-Impact Categories of Procurement (HiCATs) and key departments driving emissions, enabling targeted action to reduce the federal government’s supply chain carbon footprint. It uses an Environmentally Extended Input–Output (EEIO) model (OpenIO-Canada v2.11) applied to procurement data from the CanadaBuys dataset, which includes only contracts awarded by Public Services and Procurement Canada (PSPC) and does not include information technology (IT) procurement contracts awarded by Shared Services Canada (SSC). This spend-based methodology estimates life-cycle emissions per dollar spent, capturing upstream emissions across complex global supply chains.
Results indicate that federal procurement generated approximately 23.4 megatonnes of carbon dioxide equivalent (MtCO₂e) over the five-year period, corresponding to an annual average of about 4.7 MtCO₂e. This level is not directly comparable to previous estimates as the methodology and database used in this study have both been updated and improved compared to previous studies. Total procurement spending during the period amounted to $88.9 billion CAD, reflecting the significant scale at which procurement activities influence government-wide emissions.
Emissions are highly concentrated within a small number of federal organizations. The Department of National Defence accounts for 47.1% of the procurement carbon footprint, followed by Public Services and Procurement Canada at 24.1%, and Fisheries and Oceans Canada at 9.5%. This concentration is largely consistent with their share of total spending and reflects the carbon-intensive nature of defense, infrastructure, and marine operations. Other departments contribute smaller but still notable shares, with emissions typically linked to their core operational activities.
A relatively small number of procurement categories, referred to as High-Impact Categories of Procurement (HiCATs), are responsible for a large and disproportionate share of emissions. Aircraft, equipment and maintenance represent the largest contributor at 16% of total emissions, despite a smaller share of total spending, indicating high carbon intensity. Services, including engineering, consulting, and other professional services, collectively account for approximately 20% of emissions due to their large spending volumes and embedded supply chain impacts. Additional important contributors include energy (fuel production, 5.5%), ships and marine equipment (5.1%), scientific instruments and supplies (5.1%), and construction activities (3.9%). These findings highlight both capital-intensive sectors and service-based activities as major drivers of emissions.
From a geographic perspective, most procurement emissions are associated with domestic suppliers, which account for 85.1% of the total. The United States contributes approximately 10%, with smaller shares attributable to European countries such as the United Kingdom and Germany.
Several key insights emerge from the analysis. Procurement is confirmed to be a major source of federal emissions, particularly within Scope 3, underscoring its importance in achieving net-zero objectives. Emissions are strongly concentrated by both department and commodity, meaning that targeted interventions in a limited number of areas could generate significant reductions. The results also demonstrate that services, often perceived as low-emission, contribute substantially due to their reliance on energy, infrastructure, and complex supply chains. Furthermore, capital-intensive sectors such as defense, transportation, and infrastructure dominate the emissions profile due to the high embodied carbon of equipment and construction activities.
The study acknowledges several methodological limitations. The EEIO approach relies on average sectoral emission factors rather than supplier-specific data, which limits the ability to reflect differences in supplier performance or mitigation efforts. The analysis also excludes contracts related to information technology (IT) managed by Shared Services Canada due to data availability constraints, leading to an underestimation of total emissions. In addition, the assumption that supplier location corresponds to production location introduces uncertainty in geographic attribution.
Despite these limitations, the study provides a robust and comprehensive baseline for understanding the carbon footprint of federal procurement. It identifies clear priority areas for policy action and supports the development of targeted strategies to reduce emissions. Key opportunities include focusing on high-impact sectors such as aerospace, marine equipment, fuels, pharmaceuticals, construction, and professional services, while improving data collection (particularly for IT procurement) and strengthening engagement with suppliers to reduce embodied emissions. The findings underscore that procurement transformation represents a critical lever for reducing Scope 3 emissions and advancing toward net-zero government operations.
The study aims to identify High-Impact Categories of Procurement (HiCATs) and key departments driving emissions, enabling targeted action to reduce the federal government’s supply chain carbon footprint. It uses an Environmentally Extended Input–Output (EEIO) model (OpenIO-Canada v2.11) applied to procurement data from the CanadaBuys dataset, which includes only contracts awarded by Public Services and Procurement Canada (PSPC) and does not include information technology (IT) procurement contracts awarded by Shared Services Canada (SSC). This spend-based methodology estimates life-cycle emissions per dollar spent, capturing upstream emissions across complex global supply chains.
Results indicate that federal procurement generated approximately 23.4 megatonnes of carbon dioxide equivalent (MtCO₂e) over the five-year period, corresponding to an annual average of about 4.7 MtCO₂e. This level is not directly comparable to previous estimates as the methodology and database used in this study have both been updated and improved compared to previous studies. Total procurement spending during the period amounted to $88.9 billion CAD, reflecting the significant scale at which procurement activities influence government-wide emissions.
Emissions are highly concentrated within a small number of federal organizations. The Department of National Defence accounts for 47.1% of the procurement carbon footprint, followed by Public Services and Procurement Canada at 24.1%, and Fisheries and Oceans Canada at 9.5%. This concentration is largely consistent with their share of total spending and reflects the carbon-intensive nature of defense, infrastructure, and marine operations. Other departments contribute smaller but still notable shares, with emissions typically linked to their core operational activities.
A relatively small number of procurement categories, referred to as High-Impact Categories of Procurement (HiCATs), are responsible for a large and disproportionate share of emissions. Aircraft, equipment and maintenance represent the largest contributor at 16% of total emissions, despite a smaller share of total spending, indicating high carbon intensity. Services, including engineering, consulting, and other professional services, collectively account for approximately 20% of emissions due to their large spending volumes and embedded supply chain impacts. Additional important contributors include energy (fuel production, 5.5%), ships and marine equipment (5.1%), scientific instruments and supplies (5.1%), and construction activities (3.9%). These findings highlight both capital-intensive sectors and service-based activities as major drivers of emissions.
From a geographic perspective, most procurement emissions are associated with domestic suppliers, which account for 85.1% of the total. The United States contributes approximately 10%, with smaller shares attributable to European countries such as the United Kingdom and Germany.
Several key insights emerge from the analysis. Procurement is confirmed to be a major source of federal emissions, particularly within Scope 3, underscoring its importance in achieving net-zero objectives. Emissions are strongly concentrated by both department and commodity, meaning that targeted interventions in a limited number of areas could generate significant reductions. The results also demonstrate that services, often perceived as low-emission, contribute substantially due to their reliance on energy, infrastructure, and complex supply chains. Furthermore, capital-intensive sectors such as defense, transportation, and infrastructure dominate the emissions profile due to the high embodied carbon of equipment and construction activities.
The study acknowledges several methodological limitations. The EEIO approach relies on average sectoral emission factors rather than supplier-specific data, which limits the ability to reflect differences in supplier performance or mitigation efforts. The analysis also excludes contracts related to information technology (IT) managed by Shared Services Canada due to data availability constraints, leading to an underestimation of total emissions. In addition, the assumption that supplier location corresponds to production location introduces uncertainty in geographic attribution.
Despite these limitations, the study provides a robust and comprehensive baseline for understanding the carbon footprint of federal procurement. It identifies clear priority areas for policy action and supports the development of targeted strategies to reduce emissions. Key opportunities include focusing on high-impact sectors such as aerospace, marine equipment, fuels, pharmaceuticals, construction, and professional services, while improving data collection (particularly for IT procurement) and strengthening engagement with suppliers to reduce embodied emissions. The findings underscore that procurement transformation represents a critical lever for reducing Scope 3 emissions and advancing toward net-zero government operations.
