The Government wants to use its $6 billion of purchasing power to develop the market for sustainably produced goods and services.
Commerce Minister Lianne Dalziel said central government was the biggest buyer in a range of sectors including information technology, buildings and office supplies, with an annual procurementbudget of $6 billion.
The wider state sector spends about $25 billion a year.
The Government wanted to encourage sustainability along the supply chain and to encourage businesses to come up with innovative solutions that could give rise to export opportunities as well as helping it meet long-term goals of carbon neutrality, Dalziel said.
Business New Zealand chief executive Phil O'Reilly said it was an idea worth exploring.
"But the key thing is that as taxpayers we expect them to get value for money when they spend money on our behalf. That still needs to be the driver. If you can combine the two effectively, that's fantastic, of course."
Dalziel said the focus on best value for money over the whole of goods' lives would be maintained.
Sustainable purchasing was expected to pay off in the long run as energy-efficient buildings, vehicles, computer monitors and the like had cheaper running costs over their lifetimes. An upfront investment in technologies such as video conferencing could significantly cut air travel costs over time.
The Government will increase the range of product types that carry the "Environmental Choice NZ" eco-label, and not just for the benefit of its own purchasing officers. It will provide a database, accessible to the public, of reliable eco-labels.
There is already a programme running called Govt3 which aims to help government agencies become more environmentally friendly.
Runs on the board so far include the Inland Revenue progressively replacing its fleet of more than 200 vehicles with newer models that have 20 per cent lower emissions.
And the Ministry for the Environment uses 60 per cent less energy in its buildings than similar ones in Wellington, saving it about $140,000 a year.
Prime Minister Helen Clark's statement to Parliament yesterday used the words "sustainable" or "sustainability" at least 25 times.
