Green Public Procurement in Ireland

Transcription

1 Green Public Procurement in Ireland Project Management Institute, 22/04/2015 Olivier Gaillot, Technical Director, RPS

2 5000 Talented People 250 Diverse Services 125 Countries 6 Continents

3 We are market leaders in providing Planning and Environmental Consultancy, Architectural & Engineering design (both concept and detail) and we have an enviable track record of delivery on large and complex infrastructure projects.

4 Introduction Definition and Key Concepts Benefits and Barriers Uptake in Europe and Recent Developments in Ireland International and Irish Procurement Frameworks Irish Guidance on GPP

5 Definition & concept Procurement is defined as the acquisition of goods, services or works from an outside external source. It is favourable that the goods, services or works are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location. Weel, Arjan J. van (2010). Purchasing and Supply Chain Management: Analysis, Strategy, Planning and Practice Public procurement is defined as the acquisition, whether under formal contract or otherwise, of works, supplies and services by public bodies. It ranges from the purchase of routine supplies or services to formal tendering and placing contracts for large infrastructural projects by a wide and diverse range of contracting authorities. NPPU. Public Procurement Guidelines Competitive Process ernisation/filedownload,15592,en.pdf

6

7 Procurement part of a range of policy tools Information Instruments Voluntary Agreements Regulatory Approaches Economic Instruments

8 Procurement Interaction with other policies Public procurement can shape production and consumption trends and generate significant demand for goods and services that meet policy objectives below: Environment Social Ethical trade Energy and Transport Europe 2020 on smart, sustainable and inclusive economy Innovation: Pre-commercial procurement, Lead Markets, Risk management Small businesses (SMEs) Enlargement and European Neighbourhood policy

9 Definition Green Public Procurement GPP is defined as A 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 Green primary function that would otherwise be procured. Procurement European Commission, Communication 400 of 2008 "Public Procurement for a better Environment"

10 Definition Socially Responsible Public Procurement Socially responsible public procurement means procurement operations that take into account one or more of the following social considerations: employment opportunities, decent work, compliance with social and labour rights, social inclusion (including persons with disabilities), equal opportunities, accessibility design for all, taking account of sustainability criteria, including ethical trade issues (6) and wider voluntary compliance with corporate social responsibility (CSR), European Commission, Buying Social A Guide to Taking Account of Social Considerations in Public Procurement

11 Definition Sustainable Procurement Socially Resp. Procurement Green Procurement

12 Benefits, challenges and risks Benefits: comply with legislation and contribute to environmental targets, e.g. CO2 reduction, resource use and waste, water and energy. Protect reputation, encourage new competitors, increase resilience by reducing exposure to commodity prices. Challenges and Risks: Application of GPP can increase complexity of tenders, although legal framework is becoming increasingly strong. It may require additional resources / expertise. Costs: GPP reduces costs in some categories, especially on a wholelifecycle basis. In others it can lead to higher overall costs, primarily when technology or processes are new or specialised.

13 GPP implementation

14 Opportunities to integrate Environmental Concerns in the Procurement Process 1. Identify Need 2. Define & Refine User Requirements 3. Ascertain the Budget Available Use of the EU Procurement Directives applies here 4. Find out what the market can provide 5. Decide the best process for procurement 6. Design the Tender 7. Tender Exercise 8. Contract Award 9. Contract Management, Review and Closure

15 Uptake of GPP in the EU27 Share of contracts by number Centre for European Policy Studies and College of Europe. (2012) Monitoring the Uptake of Green Public Procurement in the EU 27.

16 Perceived barriers to GPP 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Perception that Environmental Products are more Expensive Lack of Environmental Knowledge Lack of Managerial & Political Support Lack of Tools and Information Lack of Training Bouwer M, Jonk M, Berman T, Bersani R, Lusser H, Nappa V, Nissinen A, Parikka K, Szuppinger P and Viganò C, Green Public Procurement in Europe 2006 Conclusions and recommendations. Virage Milieu & Management bv, Korte Spaarne 31, 2011 AJ Haarlem, the Netherlands.

17 Barrier 1 Perception that Environmental Products are more Expensive

18 Financial impact of GPP per Country Negative numbers imply reductions in costs. Positive numbers imply increases in costs. Pricewaterhousecoopers, Significant and Ecofys (2009) Collection of statistical information on green public procurement in the EU.

19 Financial impact of GPP in the UK per Product Pricewaterhousecoopers, Significant and Ecofys (2009) Collection of statistical information on green public procurement in the EU. Core criteria: are designed to achieve some improvement over basic legal requirements, without incurring additional costs or requiring significant effort to verify compliance. Comprehensive criteria: are designed for those who wish to purchase the best environmental products on the market. This may require additional costs or additional effort to verify compliance. Link to EU GPP Criteria pp/eu_gpp_criteria_en.htm

20 Uptake of GPP by Product Group Most used Less used Source: Centre for European Policy Studies and College of Europe. (2012) Monitoring the Uptake of Green Public Procurement in the EU 27.

21 Barrier 2 Lack of Environmental Knowledge

22 Lack of (environmental) knowledge Knowledge of the market for goods, services and works Knowledge of the environmental impacts of goods, services and works How to design an effective RFT Verification

23 Meat Energy Footprint

24 Lifecycle costing Need for Verification Green washing Use of labels

25 Barrier 3 Lack of Political & Managerial Support

26 International Regulatory Framework From an international perspective the EU is bound by the conditions of the General Procurement Agreement (GPA) of the World Trade Organisation (WTO). Implementation of GPP policies takes place in the context of the rules of the Treaty on the Functioning of the European Union and particularly the Procurement Directives. Green Procurement is a voluntary instrument introduced by the EU, but there are a number of mandatory sectoral environmental legislation e.g. EU legislation e.g. Clean Vehicles Directive 2009/33/EU,. National legislation e.g. Waste Management (Food Waste) Regulations S.I. No. 508 of 2009, Etc. New Procurement Directives: Directive 2014/24/EU replacing directive 2004/18/EC and directive 2014/25/EU replacing directive 2004/17/EC.

27 The New Directives a Mandate for GPP? Ambitions of reform: make procurement more strategic by including considerations for environmental, social and innovation policies. Main possibilities include: Environmental and social records Sustainable production practices Use of eco-labels Life-cycle costing Mandatory vs. voluntary: Member State Choice or contracting authority choice. Further reading: directives.pdf

28 National Procurement Framework - Ireland Public Expenditure 3-5bn on capital works and infrastructure + 9bn on other goods/services Setting up of Government Contracts Committee & setting up of etender Construction Procurement Reform Directives 2004/17/EC and 2004/18/EC are implemented by S.I. 50 of 2007 and S.I. 329 of Financial Emergency Measures in the Public Interest Act 2010 Adoption of the Capital Works Management Framework Facilitating SME Participation in Public Procurement Circular Nov Government s Public Service Reform Plan Sept Accenture report recommending setting up of the Office of Government Procurement (OGP) Further information Capital Works Management Framework OGP Website

29 National Procurement Framework - Ireland Jan. 2013: Appointment of Paul Quinn as Chief Procurement Officer ( CPO ) April July 2013: Establishment of the OGP A target cash saving of up to 500m. over 3 years. Jan The National Procurement Service (NPS) officially transferred from the Office of Public Works and was integrated into the Office of Government Procurement (OGP) under the Department of Public Expenditure and Reform Setting up of category councils + aggregation. Adoption of Directive 2014/24/EU and Directive 2014/25/EU. These Directives will come into effect in Ireland by 18th April 2016 at the latest. Facilities Management Professional Services OGP Website Utilities ICT Office Building, Maintenance, Minor Works Marketing, Print, Stationery Lab Diagnostics Medical Professional Medical Equipment

30 National Framework Green Procurement - Ireland Jan In Ireland, GPP was formally adopted in the DECLG/ DPER publication Green Tenders: An Action Plan for Green Procurement. Green Tenders identified eight priority sectors for GPP implementation, and adopts a target for 50% of procurement in these sectors (both by number of contracts and by value) to include at least core GPP criteria. Setup of a GPP Implementation Committee 2012 Meetings of Green Tender Implementation Committee. April 2014 Publication of the DJEI National Plan on Corporate Social Responsibility July 2014 Publication of the EPA Green Procurement Guidance for the Public Sector DECLG Department of the Environment, Community and Local Government / DPER Department of Public Expenditure and Reform EPA Environmental Protection Agency SEAI Sustainable Energy Authority of Ireland DJEI Department of Jobs, Enterprise and Innovation

31 Current practices in Ireland? Policy and targets: OPW, HSE, etc. Examples: Roads, Buildings, refurbishment - NRA, OPW, LAs, etc. LED Lightings - LAs, etc. Electric vehicles - DAA, ESB, etc. Electricity supply - OGP, LAs, etc. Recycled Paper - OGP, etc. Laboratory Equipment NUI Maynooth, etc. Organic Food - Marine Institute, etc. Cleaning products - OPW, etc. ICT - DPER, etc. Dublin Fire Brigade vehicles, buildings, etc. Spend on Green Goods and Services:? cprocurement/publicationsdocuments/filedownload,29208,en.pdf

32 Barrier 4 Lack of Tools and Information

33 European GPP Tools & Information GPP Training Toolkit (2008) Module 1: An action plan for GPP Module 2: Legal module Module 3: Practical module GPP Criteria: 20 GPP Examples by Product Group Buying Green!:`the Commission's main guidance document

34 EPA Guidance Work started in January 2014, guidance published in July Focused consultation undertaken with public sector bodies and suppliers organisations to identify level of GPP implementation and the main perceived risks/barriers. Detailed review of existing criteria, guidance and legislation, how does this apply in the Irish context. Development of core and comprehensive criteria for all eight sectors. Examples, definition and tips on practical implementation are given in the guidance.

35 Decision tool for implementing GPP in technical specifications vs. award criteria

36 Decision tool for determining weightings for green award criteria

37 Irish GPP Criteria

38 Irish GPP Criteria

39 Transport Passenger Cars & Light-duty Vehicles GPP Criteria

40 Barrier 5 Lack of Training

41 Public Sector Programme

42 Conclusions Application of GPP can increase complexity of tenders, although legal framework is becoming increasingly strong. The New Directives provide further clarity. There have been some GPP implementation in Ireland but some key questions remain: The framework is there but there is a need for further leadership e.g. OGP? Monitoring of implementation and benefits is lacking. Next steps to facilitate effective implementation? Dissemination of existing experience? Are further resources and support needed?