Green Public Procurement in Korea

Dec 17, 2013

Contents

I. Korean Green Purchasing Policy

II. GPP Promotion Activities

III. Future Plans

I. Green Purchasing Policies

Act to Promote the Purchase of Eco-friendly Products (2005)

Green Purchasing Policies

Since 2005, public institutions have purchased eco-products

- Direct purchasing of eco-products

- Eco-services : printing, cleaning service, building mainte-nance

- Indirect purchasing : discretionary order on cleaning, building repairs

Target Organizations : 864 government and public institutions

(Total 28,700 institutions including affiliated organizations)

Scope of Eco-Products : Eco-Label Products, Good Recycled

mark products, Other eco-products satisfying criteria estab-

lished by the MOE

4

Action Plans to Promote Purchase of Green Products (2011~2015)

Platform for public green procurement 65%→35%

Green product manufacturing

/distribution 20%→30%

10%→30% Nationwide

green consumption

5% Global

cooperation

Incentives for

green consumption

Local green

consumption support centers

Networks for green consumption

promotion

Correct information on green purchasing

Global cooperation in ecolabeling

Free trade for green products

Environmental regulations

Green product development

and relevant system improvement

Nationwide green distribution network

Support for

production/distribution/purchasing

of green products

System for mandatory procurement

implementation

A platform for green procurement

system

Green product info system

Green construction

materials portion (before→after

)

Green Purchasing Policies5

Action Plans to Promote Purchase of Green Products (2011~2015)

Green Purchasing Policies6

2010 2011 2013 2015

No. of EL Criteria 148 153 168 181

Green Consump-tion support cen-

ter- 2 16 30

Green store - 50 400 600

Green Credit Card - 200,000 2 mil. 5 mil.

GP market size KRW25 tri.

KRW26 tri.

KRW33 tri.

KRW40 tri.

Items

Number of Certified Products

Certification Authority

Website

GR ProductsEco-labeling

150 items including office equipment, construction ma-

terials

1,672 companies, 9,799 products (As of June. 2013)

MOE / KEITI

http://www.ecoi.go.kr

247 items including waste pa-per, glass in 16 categories

206 companies (As of June. 2013)

MKE /Technology Standard Inst’

http://www.gr.or.kr

Green Product under Article 2 of the Framework Act on Low Carbon, Green GrowthGreen

Product Ecolabeled products and products of equivalent value under Article 17 of 「 Support for Environmental Technology and Industry Act 」 GR products and products of equivalent value that are designated by the Minister of Knowledge Economy under Article 33 of 「 Act on the Promotion of Saving and Recycling of Resources 」 and Article 15 of 「 Act on the Promotion of Industrial Technology Innovation 」

Green Purchasing Policies7

MOE : Overall Management

PPS : Procurement Support

KEITI : Policy Support

Public Org. : Pro-curement

Policy direction and supervision

Policy sug-gestion

Records of each organization’s procurement

Green prod-uct informa-tion

Guide-line

Green product in-formation and pro-curement support

Records and plans

Procure-ment records

Procurement request

GPP System

Green Purchasing Policies8

National Public Procurement Service operates the GePS

GePS provides detailed information on eco-products to the public or-

ganizations

GePS tracks the results of green procurement

Special Shop for

Eco-productsEco-Label prod-uct

Government e-Procurement Sys-tem

Green Purchasing Policies10

Item Features Green Prod-uct(A)

Non-Green Product

(B)Price Gap

(A-B)

Increase/Decrease rate(%)(A/B)

PC

Laptop

Copy Ma-chine

Toner Car-tridge

Paper

Desk

Toilet Paper

CPU, Memory, HDD,Monitor Excluded

CPU, Memory,HDD,

Definition, printing speed, gray scale

Printer model, print-ing volume

A4, Weight (g/m2), 1 box (2500 sheets)

Identical wood tex-ture,

1600×1200×720mm Jumbo roll, 300m, 16 rolls

B4, Weight (g/m2), 1 box (2500 sheets)

997,000

1,426,400

3,168,000

24,750

15,400

238,580

33,800

24,500

980,000

1,430,000

3,251,800

36,000

20,000

236,842

34,400

38,000

17,000

3,600

83,800

11,250

4,600

1,738

600

13,500

1.73

0.25

2.58

31.25

23.00

0.73

1.74

35.53

▲

▲

▲

▲

▲

▲

▲

▲

▲

▲

▲

▲

Price: Green Product vs. Non-Green Prod-uct

Green Purchasing Policies11

< Pertinent Institution for system submittal>

- Federal Govt. Institution : Ministry

- Autonomy : village, county & city office

- Education Office: school

- Others : each branch

Top Level(HQ. Main Office)

pertinent

Institution

perti-nent Institu-tion

pertinent

Institution

pertine

nt

Institution

Department submit

In excel file

Approve/sum up/submit

System registratio

n

system registratio

n

system registratio

n

system registratio

n

Announce final result

system

Establish procurement plan by the end of each January in accordance with the

Guideline for Purchasing Eco-Friendly Products, and after its result is an-

nounced at the end of next year February

The data are registered in the consolidated information network of the gov-

ernment (www.greenproduct.go.kr)

Reports on Green Procurement

Green Purchasing Policies13

II. GPP Promotion Activities

Procurement records reflected in performance evalua-tion

100%

Local state-run companies

Evaluator :Ministry of Public Administration and Security Evaluation indicator : Observance of gov-ernment policy (score:10)

Share out of total score : 1.5/100

Local Gov.

Evaluator :Ministry of Public Administration and Security

Evaluation indicator : General environmental management (score:14.5) Share out of total score

: 6.1/900

100%80%

20%

State-run compa-nies

Evaluator : Ministry of Strategy and Finance

Evaluation indicator : Observance of gov-ernment policy (score:5) Share out of total score : 0.3/100

Share of Green Products Effectiveness

GPP Promotion Activities14

Green Procurement Records via PPS

Organizations

Total amount

GP amount

GP ra-tio

GPP Promotion Activities15

Regular and random training sessions are held for people in charge of procure-

ment, auditing and construction at public institutions.

- 62,269 people have attended the session during the period between 2005 and

2013.

- In conjunction with the Low Carbon Green Growth Expo, attendees get to see

and use

green products after the training.

Green Procurement Training Ses-sion

GPP Promotion Activities

'05 '06 '07 '08 '09 '10 '11 '12 '13.6 -

2,000

4,000

6,000

8,000

10,000

12,000

0

10

20

30

40

50

60

70

3,030

5,125 5,985

6,061 6,860

8,816 9,591

8,295 8,476

20

2832

4448

65 64 64

48

16

Workshops are held for local governments and military per-

sonnel to showcase best practices in green procurement

- USD 5,000, USD 3,000 & overseas training are given

Awards to individuals, businesses, organizations that contrib-

ute to green procurement, development and dissemination of

green products

GPP Workshops & awards

GPP Promotion Activities17

Interviews of people in charge of green procurement at pub-

lic institutions are released every month (28,700 interviews

so far)

Institutions share their cases via best practice collections

that have been issued since 2006

Newsletter & Best Practice Collec-tion

GPP Promotion Activities18

PPS Green Products Bidding Notice : construction ma-terials

Eco-labeled construction mate-rials

GPP Promotion Activities19

Over 6.8-fold growth from KRW 255 bn before the law to KRW

1,727 bn in 2012

GPP accounts for 5 to 6.5 % over total purchases executed by

PPS

Records of Green Procurement at Public Institu-tions

255

2004

787

2005

861

2006

1,344

2007

1,584

2008

1,630

2009

1,641

2010

Unit: billion KRW

2011

1,645

Act to Promote the Purchase

of Eco-friendly Products

1,727

2012

GPP Promotion Activities21

공공기관 녹색제품 구매실적Since the enactment of the act, the number of manufacturers and certified products have been on a rapid rise

Competition leads to better quality and price

Sales of ecolabeled products have reached USD 26.8 billion

Relevant industries such as parts and materials are going green as well

GPP Promotion Activities22

For the last 8 years, public sector’s green procurement in 19

items resulted in 3.71 million tons of CO2 reduction and

14,335 new jobs

- As a result of public sector’s green procurement in 2012

CO2 Reduction= 491,000t, Economic Benefits= KRW 7.4 billion

Environmental/Economic Benefits from Green Pro-curement

2005 2006 2007 2008 2009 2010

1.6

4.8

7.59.1 9.4

8.1

108

316

495

601620

538

CO2 equivalent emis-

sion reduction (thou-

sand Tons)

Economic benefits (billion

KRW)

Job creation(capita)

2011

544

8.2

114

6,532

619

4,001

1,995

37996

36

677

7.4

491

2012

GPP Promotion Activities23

III. Future Plan

After a few years of rapid growth, Korean public sector’s

green

procurement has reached a stable stage

Approx. USD 1.63 bn (‘10) ⇒ USD 1.64 bn (‘11) ⇒ USD 1.72 bn (‘12)

Future Plans

Expand the products groups covered by GPP among the items

that are in high demand at public institutions

Ensure public institutions use green construction materials when

building new facilities or green building certification program

Strengthen green procurement policies in the private sector and

encourage green consumption among ordinary consumers

Expand partnerships with UNEP : green purchasing Training pro-

grams

Future Plans24

Thank You!

Mr. Moon, Sung-Sik ecomark@hanmail.net