International Trends in Green Consumption and Procurement

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1 International Trends in Green Consumption and Procurement Chin-Yuan Chen Manager Environment and Development Foundation November 1, 2013

2 What is Green Consumption/Purchasing? An action of environmental protection Claims led by consumers Request for green production and provision of environmentally friendly products and services

3 What is Green (Sustainable) Consumption? Definition: To sustain basic needs and improve living quality To reduce the use of natural resources, toxic substances and discharge of pollutants A consumption model that does not sacrifice the rights of future generations How to change consumption patterns without drastically reducing consumption levels

4 SCP Promotions Sustainable Consumption and Production

5 Definition of Green Consumption Quality(Q) Cost (C) Transportation(D) + Balance Q C D and E Environment(E) = Green Consumption

6 Green Consumption is a Citizen Movement 1. Leading role taken by the government Policies, rules and regulations, economic tools, and evaluations 2. Multiple roles taken by businesses Suppliers, financial supporters, and consumers 3. Social groups as advocates and monitors 4. Academic and research institutions as technology providers 5. Based on support from the general public

7 SCP Promotion Tools 1. Multilateral Environmental Agreement (MEA) Montreal Protocol, UNFCCC, Basel Convention, Rotterdam Convention, Stockholm Convention 2. EU Environmental Directives WEEE, RoHS, REACH, ErP 3. Green Procurement Measures of Various Countries 4. ISO International Standards Environmental Management System, ISO 14064~14066, ISO 50001, ISO 26000

8 SCP Promotion Tools 5. Environmental Labels and Declarations 6. Environmental Information Tools LCA, LCC, product standards/specifications, product rating systems, carbon footprint inventory tools 7. Environmental Taxation and other SCP Tools Carbon tax, tax incentives, cape and trade system, feedin tariff

9 Target fields of Green Purchasing Paper Office Supply Motorcar Printing Hotel & Meeting Products Services Printer PC Parts and Materials Cleaning Distribution Furniture Work wear Lighting Food Electric Appliance Construction Banking Electricity Energy Canteen Catering

10 Government Green Procurement 1. Government procurement accounts for 10~15% of total GDP of developed countries and the percentage in developing countries is higher. EU 17%, about 2.0 trillion Euros; Canada, 21%, the US 18%, and Mexico, 11% 2. Government should lead the way to set a role model for the private sector.

11 Government Green Procurement 3. Green procurement has been implemented for many years by governments in the US, UK, Canada, Germany, the Netherlands; Taiwan and Japan were the first to promulgate a Green Procurement Law. 4. Scope: in addition to governmental agencies and affiliates, the scope can be expanded to contractors as well as services and constructions.

12 GPP in EU Public Procurement Directives (2004) Environmental considerations shall be included in technical specifications, bid awarding criteria, and contract terms. Public Procurement for Environmental Improvement Notification (2008) Establish the 50% green target for government procurement by 2010 Announce a website with GPP Training Toolkit Priority procurement of Energy Star or Type I Ecolabelled products

13 GPP in EU Energy Efficiency in Buildings Directives (2009) Zero energy use for newly built buildings after common criteria (2013) Furniture, food and beverage services, buildings, paper, detergents, office IT equipment, textile, electricity, road construction and traffic signage, transportation, doors and windows, indoor lighting, hard floors, thermal insulation boards, and cell phones.

14 GPP in USA Legal basis Executive order #13423 signed by the US President in January 2007 #13514 executive order signed in October 2009 Article 6002 of The US Resource Conservation and Recovery Act (RCRA) EPA Environmentally Preferable Purchasing (EPP) is the main information provider. It includes EPEAT and Energy Star labelled products for priority procurement The EPA announced a Comprehensive Procurement Guideline (CPG) that includes products with recycled material applicable to all federal, state or local agencies

15 GPP in Japan May 24, 2000, the House of the Representatives passed the Green Procurement Law Central governmental agencies shall enact green procurement policies and report achievements The competent agency shall announce green procurement guidelines and principles Green Procurement Contract Law to regulate electricity, cars, building design, and energy services in order to reduce GHG emissions. 94.4% ; 37.3% ; GPN database by 28.4%

16 GPP in Korea The Green Procurement Law was passed in December 2004 and put into effect in July Products with Type I Ecolabel, Good Recycle Label, high energy efficiency, and energy saving capabilities are included in priority procurement. 75% office appliances and 15% furniture FY unit: million USD Total ~1500 ~4000

GPP in China The Government Procurement Act was announced in 2003. Scope of implementation was decided by the Ministry of Finance and the National Development and Reform Commission.

17 GPP in China The Government Procurement Act was announced in Scope of implementation was decided by the Ministry of Finance and the National Development and Reform Commission. Announced in Government Procurement List of Energy Saving Products and Product List of Environmental Labelled Products for Prioritized Government Procurement By December 2012, 91 items with Type I Ecolabels were announced, 1741 businesses and 26,470 products were certified with an annual production value of 120 billion RMB. The 11 th Product List of Environmental Labelled Products for Prioritized Government Procurement has been announced. It has a total of 24 categories, 817 businesses, and 19,755 product models.

18 GPP in Taiwan Article 96 of the Government Procurement Act An entity may provide in the tender documentation that preference shall be given to a product which has been permitted to use a label of environment protection approved by the government, and in addition has the same or similar functions Article 22 of the Resource Recycling and Reuse Act To promote the recycling and reuse of resources, government agencies, public schools, public enterprises and organizations, and military authorities shall preferentially procure government-recognized environmentally preferable products, renewable resources produced within the national territory, or recycled products in which at least a certain proportion of renewable resources as raw materials are used. The Promotion Initiatives of Green Procurement for Governmental Agencies 40 designated product items (2013) include: Office stationary and paper, office equipment, electronics, resource reuse products, detergents and others

19 GPP in Taiwan Common Supply Contract provided by the Bank of Taiwan After many years of implementation, government procurement personnel are familiar with Common Supply contracts Large-scale procurements attract the participation of suppliers and reduce costs Each agency saves by reducing the amount of biddings and quotation inquiries as well as administrative costs Green procurement target increases from 50% in 2002 to 97.3 % in 2012 The total amount of green procurement in 2002, 2.6 billion, jumped to 5.61 billion in 2003 and in recent years, over 9 billion. Quality and functionality approved by governmental agencies.

20 International Green Consumption Trends International Council for Local Environmental Initiatives(ICLEI) Northern American Green Purchasing Initiative(NAGPI) Japan/Taiwan/Korea/Thailand/Malaysia/India/China/Vietnam/the Philippines have created similar organizations. The IGPN was officially established in April 2005.

21 International Green Purchasing Network Established in April 2005 Main activities include: (IGPN) 1. Eco Product International Fair (EPIF) held in Spain, India, China, Singapore, Malaysia, Thailand, Vietnam, and Indonesia since The EPIF will be held in Taipei in Enactment of Introduction to Green Purchasing and analysis of global green purchasing guidelines 3. Worked with Asian Productivity Organization to compile green product catalogue and Eco Product Database/ Directory

22 Japan Green Purchasing Network Established in February 1996 Objectives:Education and promotion of green purchasing concepts and practices -Provision of useful information -Platform for experience and information sharing Members:2,046 companies, 203 local governments/agencies, 242 private organizations (as of March 2013)

23 Efficacy and Influence of GPP Market incentives concretely provided by GPP efforts Creation of new products E.g. : Recycling and reuse of toner cartridges Green supply chain E.g.: Paper package boxes

24 Business/Organization Green Purchasing Encourage NGOs to promote and educate the public and businesses about green purchasing; collect, interpret, and evaluate environmental information and data on products and services Encourage businesses to participate in R&D, production, and sales of green products and services as well as to conduct green purchasing of goods (including material, parts, and components) needed for operations

25 Promotional Activities of the Government Green product exhibitions International conferences Green shops (physical and on-line ) Green hotels and restaurants Award for Outstanding Green Purchasing Consumption guideline and product catalogue Encouragement of inter-entity supplies Train the trainer and teaching materials Literature

Encouraging the registration of Green Stores (now exceeding 11,000) Encourage businesses sign Letter of Commitment with local

26 Private Sector Green Purchasing In 2007, the Taiwan EPA launched the Implementation Program of Green Purchasing toward Private Businesses and Organizations Its initiatives include: Strengthening the dissemination of information via the Green Living website Encouraging the registration of Green Stores (now exceeding 11,000) Encourage businesses sign Letter of Commitment with local environmental protection bureaus. In 2011, products with environmental labeling were sold by green shops at the total value of 16.6 billion.

27 Marketing and Promotion

28 Green Hotels Began in April 2012 with the participation of 253 hotels Hotels provide incentives to guests who choose not to use disposable toiletries or change their bedding and towels every day Working with eight large banks to provide rebates to credit cards More than 32,000 people have participated 28

29 Reduce costs Why Do Businesses Need Green Purchasing Lower pollution, save resources, reduce electricity, water, and waste treatment bills Requested by government or buyers For example, restrictions on indoor renovation materials regulated by the Construction Technology Rules Introduce green supply chain to meet the demands of buyers Use Green to segment business and products Fulfill corporate responsibilities Improve environmental quality Respond to internal and external pressure and improve image

30 Future Prospects Effective results from government green procurement have been observed but there is still room for development. Due to international pressure, businesses must integrate green purchasing with Greening the Supplychain acts. Public education to promote green purchasing is essential.

31 Chin-Yuan Chen Environment and Development Foundation Tel: Fax:

Activities of Green Procurement in Taiwan. Dr. Ning Yu Chair, Green Purchasing Alliance and President, Environment and Development Foundation

Activities of Green Procurement in Taiwan Dr. Ning Yu Chair, Green Purchasing Alliance and President, Environment and Development Foundation Outline Green Consumption Green Procurement Government Green