The Green Purchasing Law, and Promoting Green Procurement In Japan. Presentation by Shohei Yamada Ministry of the Environment, Japan

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The Green Purchasing Law, and Promoting Green Procurement In Japan Presentation by Shohei Yamada Ministry of the Environment, Japan

1. Law Concerning the Promotion of Eco-Friendly Goods and Services by the State and Other Entities (Law on Promoting Green Purchasing)

(1) Mechanism of the Green Purchasing Law(1) Promotion of Green Purchasing by Ministries and Agencies Article 6 Establishment of the Basic Policy for the Procurement of Eco-Friendly Goods etc. Direction for Promoting Green Procurement Designated Procurement Items and Evaluation Criteria Ministries and Agencies Article7 Each Organization creates and publicizes a Procurement Policy Procurement of Goods and Services based on Procurement Policies Report on the results and achievements of Green Procurement Article 9 Requests from the Minister of the Environment and other ministries to be taken into account Basic Policy Basic Policy is revised every year in the following procedures. Public offering proposal, Investigative commission by academic expert, Public comment, Cabinet decision Designated Procurement Items are defined by environmental specs. ( It isn t appoint individual products ) http://www.env.go.jp/en/laws/policy/green/2.pdf Ministries and agencies should not increase or adjust Their total procurement amount for the reason of implementing this law.

Mechanism of the Green Purchasing Law(2) Article 10 Local Governments Create or update existing versions of Green Procurement Policies every fiscal year Procure Goods and Services based on the Policies 2005 Data - taken from a questionnaire on Green Purchasing Significance of the green purchase 47 Prefectures /14 Major cities Districts/Cities Towns/Villages Total 0% 20% 40% 60% 80% 100% Article 5 Responsibility for Businesses / Citizens Consciously purchase eco- friendly goods as much as possible Very Status of procurement policies 47 Prefectures /14 Major cities Districts/Cities Towns/Villages Significant Other Total 0% 20% 40% 60% 80% 100% Status of procurement polici

Mechanism of the Green Purchasing Law(3) Provide Appropriate Information on Environmentally Friendly Goods and Services Manufacturers Provide environmental information on their products Environmental Labeling Organizations Promote eco-labeling programs highlighting their scientific analysis, while complying with international eco-labeling standards The Government Manage and analyze information provided by manufacturers and environmental labeling organizations Provide guidelines on appropriate information methods on eco-friendly goods and services

2.Overview of the Basic Policy (1) Basic Philosophy for Procurement of Eco-Friendly Items Environmental attributes should be considered in addition to price and quality considerations Consideration from environmentally diverse viewpoints: Products that contribute to the formation of a socio-economic system through an environmentally sound material cycle Products that contribute to reducing greenhouse gases Consider reducing environmental impacts throughout the product s lifecycle, from manufacture to disposal. Commit to long-term use, correct utilization, and appropriate disposal of procured goods and services (separation into appropriate waste streams)

Overview of the Basic Policy (2) Designated Procurement Items and Evaluation Criteria As a general rule, clear numeric data shall be used for selecting designated procurement items. If clear numeric criteria cannot be established, attributes that contribute to reducing environmental impact shall be defined as factors for consideration. As needed, these standards can be revised in response to product improvement, market development, and further development of our scientific knowledge of the products. When items included in the designated procurement items list become readily available in the marketplace, the item shall be omitted from the listing. (i.e. televisions, calculators)

(3)The Designated Procurement Items List 1 Paper (8Items) Stationery (79Items) Water Heaters, etc. (4Items) Lighting (3Items) Vehicles, etc. (5Items) Categories Office Furniture (10Items) Office Automation Machines (13Items) Home Electronic Appliances (4Items) Air Conditioners, etc. (3Items) Designated Procurement Items Copier Paper, Printer Paper, Toilet Paper, and 5 other items Ballpoint Pens, Scissors, Glue, and 76 other items Chairs, Desks, Shelves, and 7 other items Copiers, Printers, Fax Machines, and 10 other items Electric Refrigerators, and 3 other items Air Conditioners, Gas Heat Pump Air Conditioners, Space Heaters Electric Hot Water Supply System, Gas Cooking Appliances, and 2 other items Fluorescent Lighting Equipment, Fluorescent Light Bulbs, Various Bulb-Shaped Lighting Vehicles, ETC Adaptable Car Accessories, VICS Adaptable Car Accessories, Tire, Engine Oil

(3)The Designated Procurement Items List 2 Categories Fire Extinguishers (1Item) Uniforms and Work Clothes (2Items) Interior Fixtures/ Bedding (9Items) Work Gloves (1Item) Other Fiber Products (3Items) Facilities (4Items) Public-Works Projects (58Items) Services (7Items) Total (17Categories) Fire Extinguishers Uniforms, Work Clothes Tents, Tarps, Safety Nets Designated Procurement Items Curtains, Carpets, Blankets, Comforters, and 6 other items Work Gloves Solar Power Generation Systems, Garbage Disposals, and 2 other items Portland Blast Furnace Cement, Pavement Material, Flushable Toilets, Green of Rooftops, and 54 other items Printing, Cafeterias, Automobile Repair, and 4 other items 214Items

2. Achievement of Green Purchasing

(1) How far did the Government s Green Purchasing improve? Achievements of Goods & Service 160 140 120 100 80 60 40 20 0 FY2001 FY2002 FY2003 FY2004 100 90 80 70 60 50 40 30 20 10 0 Over 95% Items % Ratio: Designated Procurement Items included in the Government s Procurement / Total Procurement % FY2004 Goods & Service 146 Items Ratio over 95% 132 Items About 90% Items are ratio over 95% We check low ratio items to know the reason. Concerning automobiles, since the end of FY 2004, all official vehicles have been replaced by low emission vehicles. We think that Ministries & Agencies have good achievements for promotion.

(2) Quantity of Products with Reduced Environmental Impacts Disseminated in the Market Copier Paper (tons ) 1,000,000 Regular Copier Paper Purchased Designated Procurement Goods 32.1% (DPG) Percent of DPG Purchased 33.5% 800,000 815,508 762,118 789,527 804,961 798,087 30% 26.6% 600,000 23.6% 20% 720,909 582,258 579,388 546,258 530,667 400,000 11.6% 10% 200,000 258,703 267,420 179,860 210,139 94,599 0 0% FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 Increased Volume of Environmentally Preferable Copier paper purchased

Quantity of Products with Reduced Environmental Impacts Disseminated in the Market(2) 100% 80% Vehicles Fluorescent Lamps Paper Binders Plastic Binders Paper files This graph shows market share of Designated procurement items of 2000 and 2004 FY 2004 60% 40% 20% 0% Staplers Pencils Plastic files Ball-point pens Copier Paper Mechanical pencils Rulers Marking pens Mechanical pencil lead 0% 20% 40% 60% 80% 100% FY 2000 This area is that market share disseminate from 2000. All 14 items that we check disseminate share from 2000.

(3) The Decline of the price involving the dissemination of Designated Procurement Items Procurement Policy Issued by Ministries 800000 i.e. Ministry:<Copier Paper> 100% recycled pulp content: Procurement goal 100% Regular Items: Green Purchasing Items 3062 yen<3545 yen(2000) 3059 yen>2930 yen(2005) Amount of Copier Paper Purchased 4,000 Purcased(t) 700000 600000 500000 400000 300000 200000 100000 0 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Cost(A4perabox) 2000 2001 2002 2003 2004 2005 FY Eco-friendly Eco-friendly Green Purchasing Law Established in September 2000 Paper Regular Paper Regular Paper Paper Government Procurement (Ministries and Agencies) 79.2%(2000) 98.5%(2003)

(4) Reduce Procurement Quantity Procurement Quantity of Copier Paper 90000 80000 70000 60000 50000 40000 FY 2003: 73,343t FY 2004: 62,311t Reduction of Procurement Quantity is about 15% 11052 30000 20000 10000 (t) 0 2001200 20032004 62311 (2003 2004) Procurement Quantity FL 2004 Reductio

(5) Results from the Government s effort to reduce CO2 emissions under the Green Purchasing Law (trial calculation) Comparison of CO2 Emission between 2000 (before Green Purchasing Law ) and 2004 Category/Item Previous CO2 Emissions Source Amount of CO2 Emission Prevented (t-co2) Amount Prevented (Yearly) Estimated Usage (years) Amount Prevented (Total) Plastic Office Supplies Disposal / combustion 761 --- 761 The Can for Blowing Dust Off Change HFC143a for HFC152a 8,587 --- 8,587 Office Automation Machines Electricity Usage 265 5 1,325 Home Electronic Appliances Electricity Usage 339 10 3,395 Air Conditioners Electricity Usage 250 10 2,495 High-frequency Inverter Lighting Appliance Electricity Usage 846 10 8,456 Cars Gasoline combustion 2,483 5 12,415 Solar Power Generation System Installation process 213 15 3,192 Portland Blast Furnace Cement Industrial process 1,184 --- 1,184 Total --- 14,928 --- 41,810

3. Factor of Japanese Success

Why did Ministries & Agencies become a high enforcement percentage? Procurement Policy of MoE (FY2006) Report on the results of MoE (FY2005)

Cooperate of Green purchasing actions in Japan Law on Promoting Green Purchasing Main target: Public Sector Start:2000~ 17 Categories,214 Items (2006.02) These Two Activities started before Green Purchasing Law and were well known. These Two Activities spread Green products to private sector rapidly and contribute to promote whole market to spread Green products. Type I eco-labeling(iso14024) Start :1989~ First runner standard 42 Categories About 5000 Products(2005.01) Start :1996~ About 2800 members (2200 companies, 300 governments, 300 NGOs) GPN has taken a leading role in promoting green purchasing in Japan

GPP is only a trigger Purcased(t) 800000 700000 600000 500000 400000 300000 200000 100000 0 Amount of Copier Paper Purchased 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Cost(A4perabox) We think that Eco-friendly products and a general products have to become an about the same price to change markets. Scale is small only by government consumption, and some private sector is necessary. 2000 2001 2002 2003 2004 2005 FY Eco-friendly Paper Regular Eco-friendly Paper Regular Paper Paper Many of effects are that Ministries & Agencies changed Eco-friendly paper Many of effects are that Local government & Companies changed Eco-friendly paper

Thank you Shohei Yamada Ministry of the Environment, Japan

Information

The Ministry of the Environment s Website Web pages and links on the Green Purchasing Law http://www.env.go.jp/policy/hozen/green/g-law/index.html law/index.html http://www.gpndb.jp/gpn/jirei www.gpndb.jp/gpn/jirei/

Reference Material on Green Purchasing Information on Designated Procurement Items The Green Purchasing Network Website http://gpl-db.mediapress db.mediapress-net.com/gpl-db/index.hgh http://www.gpn.jp www.gpn.jp/

Providing Environmental Information on Goods and Services for Consumers Provide clear environmental information on Goods and Services throughout it s lifecycle - from manufacture to disposal Basic Information on Products Consumers should: Buy environmentally preferable goods Shift their lifestyle to one that reduces their environmental impacts Businesses should: Advertise their eco-friendly products Provide incentives to develop new ecofriendly products Creating a Society with Sustainable Development Assessment of the Product s Lifecycle