The Green Purchasing Law, and Promoting Green Procurement in Japan

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The Green Purchasing Law, and Promoting Green Procurement in Japan November 2, 2006 Presentation by Hideki Onizaki Ministry of the Environment, Japan

1. Law Concerning the Promotion of Eco-Friendly Goods and Services by the State and Other Entities

Process for Establishing the Green Purchasing Law 1. At the Earth Summit of 1992, participating countries agreed on Agenda 21, which stresses the importance of Green Purchasing by public organizations to reduce environmental loads. 2. As a result of Agenda 21, the Japanese Government took the initiative to promote Green Purchasing. 3. The Japanese Government introduced the Green Purchasing legislation to address the issues highlighted in the Rio Declaration, while simultaneously furthering the promotion of Green Purchasing. 4. One of the six laws created to establish a recycling-based society, the Law Concerning the Promotion of Eco-Friendly Goods and Services by the State and Other Entities, was enacted in May 2000. 5. The Green Purchasing Law came into effect on April 1, 2001.

Objectives of the Green Purchasing Law Objectives Goods and Services that contribute to reducing Environmental Loads (Eco-Friendly Goods and Services Promoting Greener Purchasing by Public Organizations Providing Information on Eco-Friendly Goods and Services Establishment of an Environmentally Friendly and Sustainable Society

Encourage suppliers (businesses/private firms to develop products that contribute to reducing environmental impacts Promote environmental awareness among businesses on corporate activity Influence suppliers through market mechanisms from the demand side Creating more opportunities for General Consumers to Purchase Eco-Friendly Goods Promotion of Green Purchasing by the Government Provision of Goods The Market Suppliers Green Purchasing General Consumers Evaluation of Suppliers Efforts toward Establishing an Environmentally Friendly and Sustainable Society

Mechanism of the Green Purchasing Law (1 Promotion of Greener Purchasing By Ministries and Agencies Establishment of the Basic Policy for the Procurement of Eco-Friendly Goods etc. Direction for Promoting Green Procurement Designated Procurement Items and Evaluation Criteria Local Governments Create or update existing versions of green procurement policies every fiscal year Procure goods and services based on the policies Ministries and Agencies 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 Requests from the Minister of the Environment and other ministries to be taken into account Ministries and agencies should not increase or adjust their total procurement amount for the reason of implementing this law. Responsibility for Businesses / Citizens Consciously purchase eco- friendly goods as much as possible

Mechanism of the Green Purchasing Law (2 Provide Appropriate Information on Environmentally Friendly Goods and Services Manufacturers 製造メーカー等 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

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 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

Mechanism of the designated procurement items and evaluation criteria Basic Policy is revised every year in the following procedures. Public offering proposal Investigative commission (by academic experts Public comment (period 1 month Cabinet decision Designated Procurement Items are defined by appropriate criteria ( e.g. clear numeric data. Copier Paper Evaluation Criteria (1 100% recycled pulp content and no more than approximately 70% whiteness. (2 If coated, the total amount of coating used shall not exceed 12 g/m 2. Factors for Consideration Packaging should be as simple as possible and take into account ease of recycling and reduced environmental impact if incinerated.

Categories Paper (8 8 Items Stationery (79 Items Designated Procurement Items Copier Paper, Printer Paper, Toil Ballpoint Pens, Scissors, Glue, an Office Furniture (10 Items Office Automation (13 Items Home Electronic Appliances (4 Items Air Conditioners, etc. (3 3 Items Water Heaters, etc. (4 4 Items Lighting (3 3 Items Vehicles, etc (5 5 Items Chairs, Desks, Shelves, and 7 othe Machines Copiers, Printers, Fax Machines, a Electric Refrigerators, and 3 othe Air Conditioners, Gas Heat Pump Ai Electric Hot Water Supply System, other items Fluorescent Lighting Equipment, Various - Bul Fl Shaped Lighting Vehicles, ETC Adaptable Car Access Accessories, Tire, Engine Oil

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

Confirmation of Legality of Wood and Wood Product G8Gleneagles Summit Agreement with tackling Government Procurement,Trade Regulation and support wood product countries in G8 Environment and Development Ministers Meeting. Japanese Government Climate Change Initiative (extract Use Green Purchasing Law and introduce the step of lumber certificated legality and sustainable possibility of Government Procurement, etc. Reconsider Basic Policy for Green Purchasing Law Add the criteria of Legality of Lumber on Basic Policy for Green Purchasing Law (February, 2006

2. Achievements of Green Purchasing

Achievements of Green Purchasing (1 Progress of the Government s s Green Purchasing System 90% for most kinds of office paper,, including copier paper 95% for most stationery and office equipment Concerning automobiles,, since the end of FY 2004, all official vehicles have been replaced by low emission vehicles. (Ratio: Designated Procurement Items included in the Government s Procurement in FY 2003 / Total Procurement

(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 Newly Registered Low Emission Vehicles Low Emission Vehicles ( 台 1,500,000 Electric Methanol CNG Vehicles Hybrid Vehicles 1,353,369 Fuel Efficient Vehicles(gasoline 2,213 Fuel Efficient Vehicles(gasoline 7,913 Fuel Efficient Vehicles(gasoline 1,401 1,067,604 1,513 1,193,451 8,482 1,561 1,388,408 34,117 1,034 1,211,045 36,821 1,414 1,448,859 29,510 1,000,000 1,854 890,273 15,866 9,256 732,744 1,408 652,172 8,978 11,071 117,460 381,230 898,611 1,174,465 1,076,452 1,375,073 500,000 1,282 453,496 5,912 240,075 287,103 289,125 336,018 150,285 12,802 0 467,990 115,409 39,959 390,640 386,592 283,215 274,481 5,615 169,436 4,960 138,306 91,123 37,902 00 2nd 1/201 1st 1/201 2nd 1/202 1st 1/202 2nd 1/203 1st 1/203 2nd 1/204 1st 1/204 2nd 1/2 Ministry of Land, Infrastructure, and Transport

Basic Policy Issued by the MOE Procurement Policy Issued by Ministries i.e. Copier Paper: contains 100% recycled pulp content i.e. Ministry: Copier Paper 100% recycled pulp content : Procurement goal 100% Development and Reduced Price of the Item Amount of Copier Paper Purchase 800,000 700,000 Regular Items :Green Purchasing Items 3062 yen < 3545 yen (in 2000 3059 yen > 2930 yen (in 2005 TonePurchased 600,000 500,000 400,000 300,000 200,000 Eco Friendly G 100,000 Regular Goods Eco Friendly G 0 Regular Goods 200020012002200320042005 Green Purchasing Law Established in September 2000 year Cost(A4Paper Government Procurement (Ministries and Agencies 79.2%(in 2000 98.5%(in 2003

i.e. Ballpoint Pens: contains more than 40% recycled plastic Regular Items:Green Purchasing Items 69yen < 75yen (in 2001 Amount of Permanent Markers purchased 70yen = 70yen (in 2005 ThousandsofPens 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2001 2003 2005 Year Cost(Yen Pens that meet Standard Regular Pens 1mm of Pens 1mm of Pens Government Procurement (Ministries and Agencies 94.1% (2001 98.3% (2003

3. The Green Purchasing Law and Efforts to Prevent the Greenhouse Effect

(1 The Green Purchasing Law and the Kyoto Protocol Target Achievement Plan Basic Role of the Government The Government shall take the initiative to implement activities that prevent the exacerbation of the greenhouse effect The government shall take the initiative to procure environmentally preferable items in order to shift demand towards more eco-friendly goods and services, which will contribute to reducing the emission of greenhouse gases.

(2 The Green Purchasing Law and the Government Action Plan Considerations when purchasing or utilizing goods and services 1 Reduced Environmental Impacts of Low Emission Vehicles 2 Reduced Environmental Impacts of Energy-Efficient Efficient Electronic Appliances 3 Using Recycled Products such as Recycled Paper 4 Purchasing and using goods that do not contain Hydrofluorocarbons (HFCs but instead contain environmentally preferable substances

(3 Results from the Government s s effort to reduce CO 2 emissions under the Green Purchasing Law Comparison of CO 2 Emission between 2000 (before Green Purchasing Law and 2003 Change HFC143a for The Can for Blowing Dust Off 8,587 HFC152a Air High -frequency Inverter Lighting Appliance Cars Category/Item Conditioners Portland Blast Previous CO2 Emissions Source Disposal / combustion Plastic Office Supplies Office Automation Electricity Machines 265 Home Electronic Electricity Appliances 339 Electricity Electricity Gasoline Usage Usage 250 Usage 846 Usage 2,483 combustion 213 Solar Power Generation Installation System process 1,184 Furnace Industrial Cement process Amount of CO2 Emission Prevented (t-co2 Amount Prevented (Yearly 761 Estimated Usage (years --- --- --- 5 10 10 10 5 15 Amount Prevented (Total 761 8,587 1,325 3,395 2,495 8,456 12,415 3,192 1,184 Total --- 14,928 --- 41,810

4. The Future of Green Purchasing

(1 Further Development in the Governmental Sector Status of Procurement Policies in Local Governments 47 Prefectures Developed by all Prefectures (in 2006 15 Ordinance-Designated Cities Developed by all Ordinance-Designated Cities (in 2006 Districts / Cities Developed by 45.4% (47.0% in 2004 Towns / Villages Developed by 10.0% (11.1% in 2004 (2005 Data taken from a questionnaire on Green Purchasing Promotion for Green Purchasing to Public Sectors

(2 Development in the Private Sector Efforts of Private Businesses to Purchase Eco-Friendly Goods Private Businesses 2003 Private Businesses 2004 Public Businesses 2003 Public Businesses 2004 17.8 34.1 19 24.8 2.1 2.2 21.7 33.1 16.6 23.1 23.5 22.9 38.2 19.2 16.3 2.6 0.8 29.4 38.4 14.7 13.92.4 1.2 0% 20% 40% 60% 80% 100% Have list of Env Preferable Goods In process of developing/considering May consider in future No consideration presently Other No Reply

(3 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 Consumers should: Basic Information on Products 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 eco- friendly products Creating a Society with Sustainable Development Assessment of the Product s s Lifecycle

(4 The Work from 2006 onward An Expansion of Items Reinforcement of the evaluated criteria after investigation the environmental loads in present Designated Procurement Items and Services. We tried to examine only the documents of suggestion from the Public Businesses as usual, and now we examine new items in our own way, and frame the best criteria each year. Setting up Green Purchasing Guideline for Small Local Governments Set up the guideline (a Plan within FY2006 Test the guideline (a Plan in 2007, then set up and distribute before the end of the year

Goal for FY 2010 (5 Future Objectives To systematically implement green purchasing for the following organizations: Government:all local governments Businesses:~ ~ 50% of Public Companies and ~ 30% of Private Companies

Thank you Hideki Onizaki Ministry of the Environment, Japan