HIGHLIGHTS 

1. U.S. President Joe Biden, who aims to reduce 50–52% of the 2005 emissions by 2030 and achieve net-zero by 2050, signed an executive order (the "Executive Order on Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability") on December 8, 2021 that outlined the federal government's plan to achieve carbon neutrality by 2050. 

2. This executive order focuses on the Federal Sustainability Plan2 aimed at reducing emissions by 65% by 2030 and carbon neutrality in 2050 and presents implementation strategies for reducing and improving sustainability in key sectors such as electricity, buildings, logistics, and procurement. Hence, through the federal government's public purchasing power leverage, this executive order is expected to induce the domestic market economy to internalize greenhouse gas costs and convert to climate-friendly practices. 

3. The U.S. federal government’s leadership in promoting carbon neutrality through strong public purchasing power sets an example for how government resources and powers can be used effectively. In Korea, annual public procurement accounts for a high proportion (6.5%) compared to GDP. Strengthening the requirement to reflect greenhouse gas emissions in public procurement will make it possible to send price signals to carbon-intensive industries, including manufacturing, and accelerate the transition to a carbon-neutral economy.