The technological change to LEDs is an unstoppable reality which, little by little, is becoming increasingly important in terms of the lighting inside and outside our homes. The exterior lighting of our cities is moving decisively and clearly towards the incorporation of this technology in urban spaces. The energy efficiency, light quality, and economic benefits of LED technology are an unquestionable reality. This is causing public administration projects involving large-scale switches to LEDs to be promoted and financed; however, it is beginning to be observed that the commitment to the policies decided by this technology should take into account some environmental aspects which have not been studied to date. The environmental impact of the substitutions is caused by the need to valorize the replaced luminaires. Until now, most have been stored without the possibility of use, reuse, or recovery. The environmental impact produced in the manufacture of LED luminaires that replace the old sodium vapor (VSAP) or metal halide (MH) discharge lamps must also be considered. In addition, in the administrative clauses specifications that govern the public tenders, it is observed that the fundamental environmental aspects both of recycling the old lamps, and of the life cycle analysis (LCA) of the luminaires that are replacing them, have not been contemplated or valued with sufficient weight. In addition, there are very few public substitution contests in which environmental criteria are rewarded or valued in an important way. This work intends to summarize a methodological proposal using the techniques of multiple decision-making criteria for the selection of bidding companies for public outdoor lighting competitions. We propose the use of the PROMETHEE method multi-criteria analysis for the application of the most commonly used criteria for the luminaire LED selection process, including an environmental impact assessment with LCA techniques, and propose this as a case or model guide in the public contests of cities. A model of the bidding conditions that addresses and assesses the environmental aspects which are absolutely key to sustainable development is supported by the ecological criteria of the circular economy.