Green Procurement in Europe

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1 Green Procurement in Europe Miha Tomšič Building and Civil Engineering Institute ZRMK Ljubljana, Slovenia Workshop Buy Green 27 September 2012, hall Press Club, Fair of Plovdiv

2 From procurement to green procurement Procurement = buying goods, services and works - in the public sector various legal obligations (e.g. national Public Procurement Act) - in the private sector fewer boundary conditions

3 From procurement to green procurement Green procurement = adding the environmental component to the standard buying practice - to some extent mandatory in the public sector - voluntary in the private sector

4 From procurement to green procurement The official definition of green public procurement: 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 primary function that would otherwise be procured. (EC Communication Public procurement for a better environment, 2008)

5 Green procurement in EU and MS Starting point: Several documents and Directives by the European Commission; focus: public sector Transposition and harmonisation of Member States national legislative framework Note: GPP is a voluntary instrument, which means that individual MS and public authorities can determine the extent to which they implement it.

6 Other legislative framework in EU Regulation No 106/2008: Energy Star Regulation (2008) Directive 2009/33/EC: Clean Vehicles Directive (2009) Directive 2010/30/EU: Energy Labelling Directive (2010) Directive 2010/31/EU: Energy Performance of Buildings Directive (2010)

7 EU public procurement facts Public authorities are major consumers in Europe. Procurement volume: - 2 trillion EUR/year - 19 % of the EU s gross domestic product (GDP). Buildings (housing), transport, food & drink: over 70% of environmental impacts of (private) consumption (EIPRO study 2006) Key GPP impact areas: environment and market

8 GPP criteria The core criteria are those suitable for use by any contracting authority across the Member States and address the key environmental impacts. They are designed to be used with minimum additional verification effort or cost increases. The comprehensive criteria are for those who wish to purchase the best environmental products available on the market. These may require additional verification effort or a slight increase in cost compared to other products with the same functionality.

9 GPP criteria The basic concept of GPP relies on having clear, verifiable, justifiable and ambitious environmental criteria for products and services, based on a life-cycle approach and scientific evidence base. The criteria used by Member States should be similar to avoid a distortion of the single market and a reduction of EU-wide competition. Having common criteria reduces considerably the administrative burden for economic operators and for public administrations implementing GPP.

10 GPP criteria: 19 sets at the moment 1.Copying and graphic paper 2.Cleaning products and services 3.Office IT equipment 4.Construction 5.Transport 6.Furniture 7.Electricity 8.Food and Catering services 9.Textiles 10.Gardening products and services 11.Windows, Glazed Doors and Skylights 12.Thermal insulation 13.Hard floor-coverings 14.Wall Panels 15.Combine Heat and Power (CHP) 16.Road construction and traffic signs 17.Street lighting and traffic signals 18.Mobile phones 19.Indoor lighting

11 EC indicative GPP target Set in 2008 within the Public procurement for a better environment document: By 2010, 50% of all public tendering procedures should be green in the EU Green = compliant with endorsed common core EU GPP criteria for 10 priority product/service groups such as construction, transport, cleaning products and services. 2011: a study about the real situation in MS

12 Uptake of GPP in EU Study conducted by Centre for European Policy Studies and the College of Europe: public authorities, 26 Member States - 230,000 contracts from the period overall value: billion EUR - 10 product groups - details about core GPP criteria in the last contract - general information on procurement practice

13 Uptake of GPP in EU Findings of the study: - the target of 50% had not been met - all core GPP criteria: 26% of the last contracts - at least one core GPP criterion: 55% last contracts - at least one core GPP criterion in : 29% - the overall trend was thus still positive - 38% of the value of contracts: at least one criterion

14 Uptake of GPP in EU Findings of the study (continued): - the top 4 countries: Belgium, Denmark, Netherlands and Sweden (40-60% contracts with of all core criteria) - 12 countries with less than 20% of last contracts with all core GPP criteria - the lowest price as the decisive criterion in 64% of cases - Life cycle costs (LCC) used seldomly - inclusion of green criteria in the procurement: the average level of perceived difficulty (scale from 1 to 5) among all respondents was In 2012 the EC is reviewing its policy in the GPP field

15 Uptake of GPP in EU By number

16 Uptake of GPP in EU By value

17 Uptake of GPP in EU

18 Uptake of GPP in EU

19 Uptake of GPP in EU

20 GPP benefits; EU MS Meeting specific environmental goals and targets for example CO2 emission reductions, energy efficiency and conservation of natural resources Cost savings and value for money Increased confidence in public administration from citizens, businesses and civil society Encouraging innovation and supporting the development of competitive green goods and services and enlarging the market for these Creating healthier working conditions for staff Building capacity for public organisations to meet environmental and resource challenges in the future 11/04/12

21 Thank you for your attention! For more information see also: