Decarbonizing Health Care: New Policies Can Build Markets for Low-Carbon Supply Chains

Health care delivery organizations (HDOs) like hospitals and clinics occupy a unique space in the fight against climate change – taking care of people exposed to the health risks of climate impacts, while taking steps to limit their own contributions to greenhouse gas emissions. As a growing number of health care delivery organizations adopt ambitious greenhouse gas (GHG) emissions targets, reducing carbon pollution that originates in their supply chains will be critical for meeting those goals. 

The Georgetown Climate Center today released a new report, “Decarbonizing Health Care: New Policies Can Build Markets for Low-Carbon Supply Chains,” the third in a series on health care delivery organizations’ role in climate action. The report identifies policy options to supplement, expand, and facilitate low-carbon procurement and supply chain initiatives in the health care sector. 

Roughly 80 percent of health care emissions are indirect (“Scope 3”) emissions, much of which are embedded in the tens of thousands of medical and other products used by hospitals and health care facilities, but procuring low-carbon alternatives remains challenging due to the scarcity and cost of such products. 

In the new GCC report, lead author Joe Kruger recommends that HDOs take a two-tiered approach to reducing their GHG emissions and other environmental impacts from their supply chains. First, by adopting internal or industry-wide procurement and other initiatives to reduce their own emissions associated with their supply chains. Second, by engaging with broader policy solutions that will transform the markets for low-carbon medical technology and supplies by spurring demand for low-carbon products while stimulating investment in innovative products and materials. 

“The healthcare sector faces special challenges as it works to reduce its greenhouse gas emissions without compromising quality care,” said Kruger. “That’s especially true when it comes to the many carbon-intensive products hospitals use in caring for patients. Our research highlights the importance of collaboration among HDOs, state and federal agencies, and manufacturers in working toward solutions."

The report's recommendations include: 

• Policymakers could adopt a federal voluntary program focused on health care system supply chains 

• The Veterans Health Administration could implement a pilot “Buy Clean” program for medical supplies

• Health care systems could consider expanding efforts to spur decarbonization of medical devices and could engage manufacturers of materials such as chemicals and plastics

• The Food and Drug Administration could expand research on the risks and potential benefits of reprocessed medical products 

• HDOs could support economy-wide policies that will lower the carbon footprint of supply chains 

This report is the third in a series on health care delivery organizations and climate action. Read all three Decarbonizing Health Care reports:

• Clean Energy Policy Options
• Low-Carbon Transportation Policies Can Reduce Health Care Emissions and Benefit Local Communities
• New Policies Can Build Markets for Low-Carbon Supply Chains