Green Public Procurement in Climate Change Financial Instrument (CCFI) Climate Change Department

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1 Green Public Procurement in Climate Change Financial Instrument (CCFI) Climate Change Department Riga,25 th March 2015

2 Green Public Procurement - process whereby public authorities seek to procure goods, services and works with a reduced environmental impact throughout their life cycle when compared to goods, services and works with the same primary function that would otherwise be procured. 2

3 Climate Change Financial Instrument Climate Change Financial Instrument (CCFI) is a state budgetary programme of the Republic of Latvia, internationally known as Green Investment Scheme (GIS). The aim of CCFI is the reduction of greenhouse gas (GHG) emissions. 3

4 CCFI Summary on the Implementation of CCFI Tenders First CCFI Open Tender was announced in July of Since than there were 16 Open Tenders organized. Implementation of 2331 Projects are completed, 240 Projects are in the implementation stage. More then EUR 204 million have been committed for Project implementation from CCFI; contracted CCFI financing amounts to more than EUR 192 million. The following measures are being implemented within the framework of the projects: increase of energy efficiency; development of technologies reducing GHG emissions; technology conversion from fossil to renewable energy resources; providing information to the society regarding the importance and possibilities of GHG emission reduction; reducing GHG emissions in transport sector. 4

5 CCFI Open Tenders with Green Public Procurement component CCFI Open Tenders where Green procurement was an assessment criteria of the project: KPFI 1 Increase of Energy Efficiency in Municipal Buildings ; KPFI 3 Increase of Energy Performance in Higher Education Establishment Buildings ; KPFI 5 Complex Solutions for Greenhouse Gas Emission Reduction in State and Municipal Vocational Education Establishment Buildings ; KPFI 6 Complex Solutions for Greenhouse Gas Emission Reduction in Manufacturing Buildings ; KPFI 7 Complex Solutions for Greenhouse Gas Emission Reduction in Municipal Buildings ; KPFI - 10 Low Energy Consumption Buildings. 5

6 Information on CCFI Open Tenders where GPP was implemented Open Tender Projects completed with GPP Total of buildings in projects CCFI financing, EUR KPFI KPFI KPFI KPFI KPFI KPFI Total:

7 Procurement for the project Cabinet of Ministers Regulations for Projects Financed by the Climate Change Financial Instrument Public Procurement Law The informative report on the recommendations of Green Public Procurement and recommendations for promoting environment friendly construction in state and municipal institutions. 7

8 Green Public Procurement throughout the project implementation 8

9 GPP in the Projects of CCFI Green Public Procurement elements in different stages of project: GPP in the Regulations of Open Tenders GPP as a mandatory requirement for project contractor Monitoring of the project 9

10 GPP in the Regulations of Open Tenders GPP in the Regulations of Open Tenders GPP as a mandatory requirement for project contractor Monitoring of the project Reduction of consumption of energy (KPFI - 1; KPFI 3; KPFI 5; KPFI 6; KPFI - 7); Inclusion of GPP elements in a project would grant several quality assessment points in the process of project assessment (KPFI - 1; KPFI 3; KPFI 5; KPFI 6; KPFI - 7); Green procurement is a mandatory requirement for the project (KPFI - 10). 10

11 GPP as a mandatory requirement for project contractor GPP in the Regulations of Open Tenders GPP as a mandatory requirement for project contractor Monitoring of the project When MoEPRD approves a project, the project applicant organizes procurement for the project implementation where GPP elements are mandatory requirement: professional experience and education of the construction designer and supervisor; the technical capacity of the project applicant (ISO or equivalent); construction materials with EU Ecolabel or relevant label. 11

12 Monitoring of the projects GPP in the Regulations of Open Tenders GPP as a mandatory requirement for project contractor Monitoring of the project During the project implementation and afterwards during monitoring period of the projects, the responsible authority (Environmental investment fund) performs on site inspections and also reviews project documentation, including compliances of Green procurement elements in paperwork with the actual on site situation. 12

13 Benefits and challenges of GPP in CCFI projects 13

14 Summary on application of GPP in CCFI projects Positive Difficulties Environmental benefits Difficult to overview the implementation Social benefits Higher initial costs Economics benefits Lack of knowledge about GPP Political benefits 14

15 Thank you. 15