THE SWEDISH ENVIRONMENTAL MANAGEMENT COUNCIL

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1 THE SWEDISH ENVIRONMENTAL MANAGEMENT COUNCIL CRITICAL FACTORS TO HAVE A SUCCESSFUL IMPLEMENTATION OF LCC EXPERIENCES FROM SWEDEN Annie Stålberg

2 SAVE MONEY THROUGH GPP Green Public Procurement in the so called Green-7 * in Europe have not only decreased the environmental impact by 25% but also saved good 1% *Austria, Denmark, Finland, Germany, NL, Sweden, UK

3 LCC THE SUM OF ALL COSTS OVER THE LIFE CYCLE Acquisition cost Operating costs Maintenance costs Environmental costs (taxes / subsidies) Cost of liquidation/ remnant value

4 WORK IN SWEDEN SEMCo integrates LCC in the work of GPP/SPP SEMCo develops LCC tools with experts within the specific area, to adjust it to the target group - the procurer The LCC tools includes: 1. LCC calculation tool 2. LCC criteria including proposals for verification 3. Assisting guidelines

5 LIFE CYCLE COSTS DISHWASHER BASIC REQUIREMENTS [Procuring entity] will in evaluation use the Swedish Environmental Management Council's LCC-tool. [Procuring entity] will accept the most economically profitable tender according to the following conditions: Conditions Quantity to be procured [Defined by procurer] units Number of years the calculation comprises (years of utilization) [Defined by procurer] years Discount rate in % [Defined by procurer] % Electricity cost [Defined by procurer] euro/kwh Cold water cost (applicable for dishwasher, washing machine) [Defined by procurer] euro/m 3 Size of unit (dishwasher: place settings and/or width, refrigerating appliances: width, height, washing machine: capacity and/or width. [Defined by procurer] number/cm/kg

6 Bidder must specify the following information. This information will constitute the basis of evaluation of the tender: Procurement and energy cost Procurement cost including delivery cost per unit Dishwasher Energy use per year calculated according to (EU) No 1059/2010 Water use per year calculated according to (EU) No 1059/2010 Defined by bidder Defined by bidder Defined by bidder euro kwh/year litres/year Proposal for verification Proposed verification for energy use: energy label according to directive 2010/30/EU.

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8 Energy costs NPV Costs of acquisition

9 GUIDELINES INCLUDE Description of when to use LCC in the procurement process Needs analysis estimation of total costs Tender process evaluation of the most economic advantageous offer Detailed guide of the parameters Information of the conditions Information of what the supplier should supply Information about standards Information about NPV

10 FURTHER HELP PROVIDED Sensitivity analysis Tools from other organizations /authorities Good examples Lectures / Training Helpdesk

11 CALCULATION TOOLS General calculation tool Existing specified LCC-tools: - Cars + EU-tool - Vending and coffee machines - Outdoor lighting - Indoor lighting - Washing machines - Professional kitchen equipment - Dishwashers - Fridges and freezers - (construction) Coming areas: AV-products, medical equipment, construction

12 IMPORTANT FACTORS SWEDISH EXPERIENCES LCC tool consisting of criteria, calculation tool and guidelines Integrate LCC when developing criteria Develop the tool with the potential users Simple tools are demanded Give concrete information Stress the importance of transparency and comparable numbers

13 THE SWEDISH ENVIRONMENTAL MANAGEMENT COUNCIL Thank you for listening! / annie@msr.se