Green Procurement in Europe. Tor Vergata, 12 November 2015 Master BA Lidia Capparelli, Head GPP Unit Consip S.p.A.

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1 Green Procurement in Europe Tor Vergata, 12 November 2015 Master BA Lidia Capparelli, Head GPP Unit Consip S.p.A.

2 Content Green Public Procurement GPP in Action Life Cycle Cost

3 Green (Public) Procurement

4 Green Public Procurement Green Public Procurement (GPP) is "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. GPP is a voluntary instrument except for: Vehicles Products consuming energy Buildings refurbishment Source:

5 Green Procurement in Europe

6 Definition of Sustainable Procurement Sustainable Procurement (1) is : A process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment. (1) Definition adopted by the Task Force on Sustainable Public Procurement led by Switzerland (membership includes Switzerland, USA, UK, Norway, Philippines, Argentina, Ghana, Mexico, China, Czech Republic, State of Sao Paolo (Brazil), UNEP, IISD, International Labor Organization (ILO), European Commission (DG-Environment) and International Council for Local Environmental Initiatives (ICLEI) and adopted in the context of the Marrakech Process on Sustainable Production and consumption led by UNEP and UN DESA. Procuring the Future is available at 11/04/12

7 Energy efficiency and EU legislation Eco-label Voluntary, «Label of excellence» Ecodesign Directive mandatory, minimum requirements for entering the Community market 1 A+++ 2 A++ 3 A+ 4 A 5 B 6 C 7 D Product Category EU GPP Incentives voluntary, stimulate market for better products while ensuring adequate competition E F G Energy mandatory, ranking of products Labelling according to energy efficiency and Directive functional performance

8 Why GPP? Public authorities spend approximately 2 trillion Euro annually, equivalent to about 19 % of the EU s gross domestic product. Benefits of GPP application: Influences the market: foster the uptake of green products Uses energy efficiently Reduces CO2 + other emissions Reduces hazardous substances Reduces the consumption of natural resources Saves money

9 EU policies for GPP 2008 political target: 50 % of tendering procedures to be green by 2010 Monitoring in 2012: 50 % target not reached Development of GPP criteria: for 19 priority products / services in cooperation with Member States and stakeholders Supporting tool: Buying green! Handbook including Implementation of GPP Procurement process Life Cycle Cost (LCC) approach Key sectors: buildings, food products, electricity, timber

10 GPP in the European Union Source: 2012, CEPS, The uptake of green public procurement in the EU 27

11 Barriers and Opportunities Barriers Opportunities Number of procurement departments in Europe (e.g. about public procurement departments in Germany) No / few obligations No incentives / organisational barriers No monitoring Sometimes high initial investment Low awareness Lack of know-how / capacity Lack of information from manufactures Need of training for bidders Centralized procurement Legislative approaches (e.g. clean vehicle directive /33/EC) Monitoring (public procurement) Funding for high investments / financial schemes Communication, good practice examples Capacity building / national helpdesks with trainings, criteria, consultation, dissemination, networking Availability of training for bidders

12 GPP in action

13 EU legislation Private purchases are normally not regulated by EU or national legislation. Still, in-house regulations or environmental standards (ISO or EMAS) can be applied in order to increase competitiveness and achieve economical advantages. Public purchases in EU are regulated by Directives 2004/17/EC and 2004/18/EC and relevant national transposition legislation. The Directives define procurement organization and awarding principles and thresholds for: Public works contracts: Public supply and service contracts of Public purchasers Federal government authorities Energy, water and traffic supply institutions

14 EU sector specific framework legislation 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)

15 Directive 2004/18: Art. 23 Technical specifications 1. The technical specifications as defined in point 1 of Annex VI shall be set out in the contract documentation, such as contract notices, contract documents or additional documents. Whenever possible these technical specifications should be defined so as to take into account accessibility criteria for people with disabilities or design for all users. 2. Technical specifications shall afford equal access for tenderers and not have the effect of creating unjustified obstacles to the opening up of public procurement to competition. Whenever possible, technical specifications must be defined so as to take into account accessibility criteria for handicapped people, of planning that is adequate to all users and of environmental preservation. Technical specifications are detailed according to the following modalities: in terms of performance and functional requirements, that may include environmental characteristics. These must nonetheless be sufficiently precise to allow suppliers to identify the object of the contract and purchasing bodies to award the contract. 11/04/12

16 Directive 2004/18: Art. 23 Technical specifications 6. Where contracting authorities lay down environmental characteristics in terms of performance or functional requirements as referred to in paragraph 3(b) they may use the detailed specifications, or, if necessary, parts thereof, as defined by European or (multi-) national eco-labels, or by and any other eco-label, provided that:- those specifications are appropriate to define the characteristics of the supplies or services that are the object of the contract, the requirements for the label are drawn up on the basis of scientific information, the eco-labels are adopted using a procedure in which all stakeholders, such as government bodies, consumers, manufacturers, distributors and environmental organisations can participate, and they are accessible to all interested parties. Contracting authorities may indicate that the products and services bearing the ecolabel are presumed to comply with the technical specifications laid down in the contract documents; they must accept any other appropriate means of proof, such as a technical dossier of the manufacturer or a test report from a recognised body.

17 Directive 2004/18: Art. 23 Technical specifications 7. Recognised bodies", within the meaning of this Article, are test and calibration laboratories and certification and inspection bodies which comply with applicable European standards. Contracting authorities shall accept certificates from recognised bodies established in other Member States.

18 Green Procurement procedure Step 0: Demand analysis Step 1: Define subject matter Step 2: Define specifications Step 3: Define award criteria (e.g. better functional performance, lower energy consumption, longer lifetime, life cycle cost, etc.) Step 4: Define contract performance clauses

19 GPP Toolkit criteria GPP Toolkit ( includes criteria for: Windows, Glazed Doors and Copying and graphic paper Skylights Cleaning products and services Thermal insulation Office IT equipment Hard floor-coverings Construction Wall Panels Transport Combine Heat and Power (CHP) Furniture Road construction and traffic signs Electricity Street lighting and traffic signals Food and Catering services Mobile phones Textiles Indoor lighting Gardening products and services

20 EU and national energy and environmental labels The use of the criteria derived from mandatory or voluntary energy/environmental labels can influence manufacturers worldwide. mandatory label voluntary labels

21 Energy label for TVs 1 January January January January 2020

22 Use of voluntary labels Allowed: The use of the criteria of voluntary labels Not allowed: asking for a labelled product (Judgement of the European court of Justice in case C-368/10, European Commission vs. Kingdom of the Netherlands of 10 May 2012)

23 Life Cycle Cost

24 Green Procurement Approach BEST ECONOMIC OFFER CHEAPEST OFFER environmental performance and economic considerations (LCC)

25 Use of LCC Source: 2012, CEPS, The uptake of green public procurement in the EU 27

26 LCC calculation tool

27 GPP procedure flow chart no Minimum criteria fulfilled? Calculation tool disqualification yes Award criteria: Total number of target points cost-/performance ratio Choosing the best economic offer LCC

28 The ProcA project ProcA project content

29 Project Summary ProcA project offers: green procurement infopoints providing assistance, know-how and tools in national language Dedicated trainings in collaboration with national networks for the public sector exchange approach for effective transfer of know-how to newer Member States Assistance to develop green procurement in 42 lighthouse projects; Monitoring of the green procurement experiences in municipalities with SEAPs; Intensive communication with 50 presentations, 90 media coverings and 42 newsletters; National and European GPP award, steering committee could be the national jury of the award Policy recommendations for the SEAPs updates Participation of 12 partners from 7 European countries

30 Contact Internet: www. Coordinator: Laurenz Hermann, Berliner Energieagentur GmbH Tel.: BEA CA CONSIP Ekodoma ENEA Energiaklub ESS ESV Icemenerg KREA RAEE REACM REGEA SEC SEVEn ZRMK Germany Germany Italy Latvia Italy Hungary Sweden Austria Romania Lithuania France Greece Croatia Bulgaria Czech Republic Slovenia

31 The Buy Smart+ project elements Target groups: Modules: Public purchasers Office Equipment / IT Environmental officers Lighting Consultants Buildings including their systems

32 The Buy Smart+ project elements Guidelines Calculation Tools Purchasing Policies Good Practice Examples Information about Labels Newsletter Consultation & Trainings