What is the CO2 Performance Ladder and how does it work?
Tenders in construction and infrastructure have long since stopped being about the lowest price alone. Clients are increasingly looking at CO2 emissions and nitrogen. Companies that emit less and can prove it have a better chance of winning a contract. That is the essence of the CO2 Performance Ladder.
But what exactly is the CO2 Performance Ladder? How does the level system work? What does a higher position deliver in tenders? And what does a contractor or carrier need to be able to demonstrate? You can read all of that here.
What is the CO2 Performance Ladder?
The CO2 Performance Ladder is a certification system for companies that want to demonstrate how they manage their CO2 emissions. It is administered by SKAO, the Foundation for Climate-Friendly Procurement and Entrepreneurship.
Here is how it works: a company maps its CO2 emissions, sets reduction targets, and undergoes external auditing. The more ambitious the approach, the higher the level on the ladder. And the higher the level, the greater the award advantage in tenders.
For governments and clients, the ladder is a procurement tool. They use it in tenders to drive sustainability — not just through the lowest price, but also through demonstrable CO2 reduction. For companies, it is a management system: a structure for making emissions transparent, setting targets, and achieving results.
The underlying idea is straightforward. Companies that emit less and can substantiate it are in a stronger position in tenders. That makes investing in reduction financially attractive and creates an incentive that goes beyond regulation alone.
Changes in CO2 Performance Ladder version 4.0
In early 2025, SKAO released a new version of the CO2 Performance Ladder. The five levels of the old system were replaced by three rungs — a deliberate choice, as the system needed to be more readable while also being more ambitious for companies that are already further along in their climate approach.
The update also aligns with international developments, such as the European CSRD directive and the Paris climate targets. Companies already working within those frameworks can now align the CO2 Performance Ladder more closely with them.
New entrants can still join without a major barrier. Rung 1 requires a comparable effort to the lower levels of the old version. The ambition only truly increases as you move further up the ladder.
What do the rungs involve?
CO2 Performance Ladder version 4.0 works with three rungs. Each rung places concrete requirements on insight into an organisation's own emissions and demonstrable reduction targets. The higher the rung, the more demanding those requirements.
Rung 1
The first rung is the starting point. An organisation maps its own CO2 emissions: vehicles, machinery, and buildings. In addition to that insight, Rung 1 requires concrete reduction targets and CO2 awareness throughout the organisation — not just at management level, but also on the shop floor.
Rung 2
Rung 2 goes a step further. An organisation looks not only at its own emissions, but also at what happens in the chain: with suppliers, subcontractors, and clients. The focus is on the area where the greatest CO2 gains can be made.
An organisation does not need to fully account for all emissions. Attention goes to the part with the most impact — which differs per organisation. A contractor with many construction machines looks at things differently than an engineering firm or a logistics company.
In addition to a broader inventory, a climate transition plan is mandatory, with targets for the next five to ten years.
Rung 3
Rung 3 sets the most demanding requirements. The goal is zero emissions, no later than 2050. Not as an aspiration, but as a demonstrable target with concrete interim steps and active collaboration within the supply chain. For organisations that already have ambitious climate targets, Rung 3 is the logical next step.
Which clients use the CO2 Performance Ladder?
The CO2 Performance Ladder is used by clients who want to steer on sustainability in tenders. These are primarily public bodies: think municipalities, provinces, and national agencies.
For contractors and carriers, this means there is a good chance they will encounter the ladder as an award criterion in a tender. Anyone who anticipates this is well advised to have their emissions mapped out in advance.
What does the CO2 Performance Ladder deliver in tenders?
Contracting authorities reward companies that demonstrate a higher level of ambition with a notional award advantage. This means that a contractor with a higher rung on the ladder can effectively bid lower than a competitor, without actually lowering their price.
A concrete example: Rijkswaterstaat is one of the largest clients in the Dutch construction and infrastructure sector and actively uses the CO2 Performance Ladder as an award criterion. Contractors who demonstrate that they are reducing their emissions receive a notional discount on their tender price. The higher the rung, the greater the advantage.
From 1 July 2026, Rijkswaterstaat will apply Handbook 4.0 to new tenders. The notional discounts are as follows:
- Rung 1: 2% notional reduction of the tender sum
- Rung 2: 4% notional reduction of the tender sum
- Rung 3: 6% notional reduction of the tender sum
If a contractor fails to meet the promised level of ambition after award, a penalty of 1.5 times the advantage received will follow. The incentive to deliver on the commitment is therefore real.
On a project worth €20 million, Rung 3 represents a notional discount of €1.2 million on the tender price. That can be the difference between winning and losing.
How do you demonstrate CO2 performance in a tender?
To obtain an award advantage in a tender, a certificate is not strictly required. There are two ways to demonstrate that the required level of ambition is met.
The first is a project declaration. An auditor assesses after completion whether the project was executed in accordance with the set requirements. This is an option for companies that want to use the ladder on a one-off basis without certifying the entire organisation.
The second is a CO2 Performance Ladder certificate. This demonstrates that both the organisation and the projects it executes comply with the promised level of ambition. In practice, most companies choose this option, as the certificate can also be used in other tenders.
How do you collect CO2 data for the CO2 Performance Ladder?
The foundation for CO2 Performance Ladder certification is reliable CO2 reporting. That reporting must be prepared on the basis of a recognised calculation method and demonstrable emissions data.
For construction companies, contractors, and carriers, that data is already embedded in the vehicles and machines themselves. Fuel consumption, operating hours, kilometres, and AdBlue are recorded via the on-board computer. The step that many companies are still missing is the automatic conversion of that operational data into reliable emissions reporting — per project, per period.
Flowter takes that step automatically. The calculation method converts data from vehicles and machines into CO2, NOx, and NH3 per project location and period, in line with the standards used by the market and public authorities. GPS-Buddy has had its IT controls regarding emissions and reporting methodology independently assessed through an ISAE 3000 assurance process, carried out in collaboration between TÜV NORD Netherlands and its partner Diggle BV. The report can be exported as PDF, XLSX, or CSV and shared directly with an auditor, client, or permit authority. That way, the emissions figures are ready when they are needed — without manual work and without debate over the methodology used.
Emissions reporting is one part of asset intelligence
Insight into emissions is valuable beyond tenders too. Knowing what vehicles and machines emit also reveals where fuel is being wasted, where gains can be made, and how operations can become more efficient. Flowter brings all that data together on one platform — from emissions reporting and fuel consumption to driving behaviour, location, and operating hours. That way you are steering not just on tenders, but also on costs, efficiency, and safety.
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Note: this article is based on the situation as of May 2026. The situation may change. No rights can be derived from this article. It is based on information from SKAO, the administrator of the CO2 Performance Ladder in the Netherlands, and from Rijkswaterstaat. For the most current information, consult the official website: co2-prestatieladder.nl.