Overview on Green Purchasing Policies, Trends, Practices and Influence in Hong Kong and Asia

Transcription

1 Overview on Green Purchasing Policies, Trends, Practices and Influence in Hong Kong and Asia May 23, 2009 Ms Linda W P Ho Chief Executive Officer Green Council Hong Kong SAR, China 1

2 Presentation Outline: I. About the Green Council II. Green purchasing Demand for and Supply of Green Products III. Identification of Green Products IV. Government Green Procurement (GGP) V. Private Sector Green Purchasing VI. Future Outlook 2

3 I. About the Green Council 3

4 Green Council Established in 2000 Non-Government Organization (NGO) Non-Profit-Making Organization Non-Partisan Environmental Organization 4

5 Major Objectives 1. To enhance the environmental awareness of the general public 2. To assist local and international enterprises in improving their environmental performance 3. To help Hong Kong establish a greener image worldwide 5

6 II. Green Purchasing Demand for and Supply of Green Products 6

7 What is Green Purchasing? Quality + Cost + Delivery + Environment = Green Purchasing 7 Source: The Green Purchasing & Green Public Procurement Starter Kit

8 Life Cycle Impacts 8

9 Target Fields of Green Purchasing Paper Office Supply Motorcar Printing Hotel & Meeting Printer PC Products Services Cleaning Distribution Furniture Parts and Materials Work wear Banking Electricity Energy Lighting Food Electrical Appliance Source: The Green Purchasing & Green Public Procurement Starter Kit Integrated Circuit Construction Canteen 9 Catering

10 Green Purchasing Encompasses Raw materials and components used by the buyer organization for manufacturing products or services Finished products or services for their own use Examples Recycled content products Environmentally preferable products Bio-based products Energy- and water-efficient products Alternative fuel vehicles/alternative fuels Non-ozone depleting substances Other environmentally innovative alternative products 10

11 III. Identification of Green Products 11

12 Which Criteria to Use Types of Product Environmental Labelling Based Upon ISO Standards [Note: ISO series guidance, not certification standards] Type I Guidance for leadership certification (ISO 14024) Multiple criteria, life cycle considerations (LCC) Type II Guidance for self-declared claims (ISO 14021) Self-declaration / Claims by manufacturers Type III Guidance for information (ISO 14025) LCA-based; self-declaration verified by independent third parties Other Types/Programs e g single attribute or sector labelling 12

13 Why Select Type I World s first/earliest ecolabelling programs (Germany Blue Angel in 1977), most widely known High credibility (mostly government initiated and follow international standards -- ISO / ISO 14020) Operated by public or government commissioned entities to minimize conflict of interest Open and transparent criteria development processes with multiple stakeholders involvement Precise and quantified criteria based on full life-cycle considerations which enables identification of overall environmental performance leaders Independent third-party certification processes Can be easily incorporated into tendering documents Possibility of international/regional mutual recognition 13

14 Global Ecolabelling Network (GEN) A non-profit association of environmental performance leadership identification, certification, labelling and recognition organizations from around the world 14

15 GEN Members Asian Members 15

16 IV. Government Green Procurement (GGP) 16

17 Green Procurement Solution to Climate Change? products and services contribute directly and indirectly to climate change across their respective life cycles some products are less impacting than others Type I ecolabels help identify and confirm environmental leaders climate change benefits (avoided impacts through choices made) can be quantified (relatively) examples: household appliances - potential avoidance of 50% automobiles even more significant potential paper products - potential 30% avoidance 17

18 Why Government Green Procurement? Group buyers Huge purchasing power Easy to demonstrate effectiveness Role model for business and general consumers Using market forces to stimulate greener products with competitive prices 18

19 Mandatory GGP Approaches in Asia China - Government Procurement Act -- Enacted July 2006, enforced January 2007 May preferentially purchase ecolabelled products Japan - Law on Promoting Green Purchasing Enacted May 2000, enforced May 2001 Korea - Green Purchasing Law Enacted December 2004, enforced July 2005 Thailand Government Management Plan Promulgated in March

20 Typical Requirements in Mandatory Green Procurement Legislation Organization s green purchasing policy, plan, goals Designated product categories, specific criteria, and other requirements Compliance requirements (target) Provision of information, assistance, training Monitoring and reporting mechanisms Awards to best performers 20

21 Pros & Cons of Mandatory Approach Pros: Governments work better when regulated by law Clear targets and designated product categories Consistent practices across nation and institutions Easy to trace performance Cons: Need additional administrative resources to keep a fair playing field Conflict with the voluntary nature of ecolabelling May be seen as trade barrier 21

22 GPP in Hong Kong Green Procurement Becomes One of the HKSAR Government s Policies ( ) Product Eco-responsibility (PER) Bill - legal framework for implementing producer responsibility schemes (PRS) - which is a key policy initiative in the Policy Framework for the Management of Municipal Solid Waste ( ) for waste reduction, recovery and recycling 22

23 Green Procurement Becomes One of the HKSAR Government s Policies ( ) 23

24 Green Council s Roles in Hong Kong Green Purchasing Actively collaborate and participate in pertinent consultations and initiatives led by HKSAR Government and other organizations Organize and conduct conferences/seminars/workshops on Green Purchasing for various audiences 24

25 Promotion of Green Purchasing for Hong Kong Industries by Green Council Key Initiatives: Hong Kong Green Label Scheme (HKGLS) China Environmental Label Cyber Green Centre Hong Kong Green Purchasing Charter 25

26 GPP in China Ministry of Finance united with SEPA published Implementation Guidance on Government Procurement Based on Environmental Labeling Products 26

27 GGP in China With consideration of public procurement reform and environmental labeling products markets, Ministry of Finance and SEPA release updated products lists for selected certified environmental labeling products categories The official guidance requires every public sector organization to take active measures to consider and use these product lists Launched on Jan 1, 2007 at central and provincial levels and on Jan 1, 2008 at other levels 27

28 China Environmental Label Number of Awarded Companies Year 28

29 China Environmental Label Year Number of Awarded Products

30 GGP in Japan Law on Promoting Green Purchasing Enacted May 2000, enforced May 2001 All state institutions obligated to purchase designated procurement items (200 products in 18 categories) All central government ministries, 47 prefectural governments, 12 designated cities and 50% of 700 cities practicing green purchasing For designated items 95% green products Labels referenced by government purchasers: Eco-mark 94.4% ; Energy Star 37.3% ; GPN Data Base 28.4%. 30

31 Japan Eco Mark Numbe r of Ce rtifie d P roduc ts Number of Product Categories Year No. of Product Categories No. of C ertified Products

32 GGP in Korea Green Purchasing Law - Enacted December 2004, enforced July 2005 Recently, the number of Korean ecolabelled products has risen dramatically. Korean ecolabelling criteria exist for 111 product categories; 5320 products had received certification as of Number of Product Categories Number of Awarded Companies Number of Awarded Products Year 32

33 GGP in Thailand Government Management Plan as of March 2005, all government agencies have been required to begin and continue to buy green products by 2009 By 2011, all government departments within the agencies must be purchasing green products 25% compliance in % compliance expected by 2011 Set green purchasing levels in targeted product and service areas: 25% in % in % in % in

34 Eco-labelling and GGP Relationship and Synergy Ecolabel product criteria used in procurement technical specifications (precise, quantitative and certified + clear distinction from alternative products) Ecolabelling and ecolabelled products flourish due to mandatory green procurement -- obvious and major incentive [as long as products are also otherwise comparable in quality, overall performance, etc., with the competition] Green procurement helps guide product categories selection for ecolabelling (e.g. office equipment) Green procurement may help to trace effectiveness but diminish the voluntary nature of ecolabelling Awareness-raising through green procurement 34

35 Key Elements for Success Commitment and support from top-level and purchasing department(s) officials and staff Enough green products to choose from good information dissemination Task force to promote, with objectives, targets and programs Identification of green products based upon practical, scientific methodology and open/credible/fair process 35

36 Difficulties Encountered Decentralization of purchasing power No appreciation and/or application of life cycle cost considerations (e.g. compact fluorescent lamps) New/revised procurement laws may include complex bidding procedures Price preference difficult to sell and/or implement Procurers familiarity with and loyalty to long-standing suppliers [who may not offer green products] Fear of being challenged by non-green product suppliers 36

37 V. Private Sector Green Purchasing 37

38 Green Purchasing Networks (GPNs) in Asia Promotion of green products production, marketing, consideration, selection and purchasing by businesses manufacturers and marketers (as well as their suppliers and consumers) Attention not limited to Type I labelled products 38

39 VI. Future Outlook 39

40 Future Outlook Government Green Procurement has demonstrated effectiveness, but still has plenty of room for improvement "Greening the supply chain" is a must for business under international pressure Private sector green procurement is the step to Corporate Social Responsibilities (CSR) Green procurement and eco-labelling should be promoted and operate together 40

41 Future Outlook A Hong Kong Green Purchasing Network (HKGPN): Four Key Conditions for Establishment Commitment [initial and sustained support and participation] from HKSAR Government Major public utilities and corporations support bulk purchasing Significant and ever expanding support from Small- and Medium-Sized Enterprises (SMEs) as both suppliers and consumers Determination and widespread application of an appropriate and useful definition of environmentally preferable [ green / greener ] products pursued and achieved through a sound scientific methodology and an open/credible/fair process 41

42 Future Outlook HKGPN Features Required for Success Sustained [and ideally increasing] commitment and support from top-level officials and purchasing department personnel Enough quality, alternative green products in the market to enable targeted and competitive procurement Good information dissemination and sharing Task force to direct the establishment and promotion of appropriate objectives, targets and programs Identification, distinction and confirmation of green / greener products based on scientific methodology and open/credible/ fair processes 42

43 Thank you Green Council Contact Details: Website Telephone (852) Facsimile (852)