Training of SMEs operatorsPlace, date

Sustainable Timber Action in EuropeTraining for Small Medium Enterprises (SMEs)Module 3: Sustainable Public Module 3: Sustainable Public ProcurementProcurement

Power of public procurement

• Public authorities in EU spend approx. €2 trillion per year – equivalent to 19% of EU GDP

• Huge range of spend areas – from paper to huge infrastructure projects

• 5 – 15% market share for most goods and services – in certain areas much higher

• Huge potential to drive the development of sustainable solutions

What is sustainable public procurement (SPP)?

• A process whereby public authorities take into consideration in their procurement activities the environmental, social and economic impacts of products, services or works throughout their life cycle

• Life cycle:

• Extraction/harvesting of raw materials• Processing of materials & assembly of product• Transportation of materials and product• Consumption of product during use (energy, water etc.)• Disposal of final product

SPP examples

• Buying energy efficient computers, meeting the Energy Star requirement

• Demanding catering companies serve organic food and fair trade coffee

• Setting strict energy performance standards for new buildings and major renovations

• Using service providers who employ disadvantaged people

• Buying green electricity, produced by renewable sources

Does it work? A small selection...• City of Vienna: saved €44.4 million and over 100,000

tones of CO2 emissions between 2004 and 2007 through its EcoBuy (Ökokauf) programme

• City of Barcelona: in 2010 spent €43 million on green products and €92 million on “greened” services (e.g. lighting, fountain maintenance)

• City of Rome: 69% of the 144,000 meals served by the city each day contain organic food

• Town of Venelles, France (Pop. 8,100): A majority of cleaning products purchased are eco-labelled and fully biodegradable

“Ecobuy Vienna”

Success factors:

• Starting point (policy): Climate Protection Programme (“KliP Wien“)

• Collaboration between different municipal departments: Finance,

Environment, Construction

• Strong marketing (videoclip, games in schools, awareness raising)

• Systematic stakeholder involvement (180 municipal employees involved in

development of product criteria)

• Binding decree at top administration level to make “Ecobuy Vienna” criteria

mandatory for procurers

Source: www.oekokauf.wien.at

Success: WG Food

In 2009:

•30% in public hospitals

•12% in schools

•18% in elderly homes

•51% in public kindergartens

Overall success

From 2004-2007:

• 44,4 Millionen Euro (ca. 17 million EUR/year)

• 103,000 t CO2 (ca. 30,000t/year)

What can SPP achieve?

• Major reductions in CO2 emissions – Passive construction, highly-efficient lighting, IT equipment

• Development of new environmental technologies & new ways of carrying out services

• Improvements in air & water quality, reduce waste generation – low emission vehicles, bio-based products

• Save money – meet your needs more efficiently. Consider the real costs over the life cycle

• Social benefits – Creating skills, training and employment opportunities, encouraging fair and equal opportunities for all, supporting SMEs and social enterprises

What is happening at the European level?

• Revision of EU Procurement Directives

• EU GPP Communication

• EU GPP support: GPP criteria, Buying Green Handbook, Helpdesk and news-alerts

• EU GPP obligations: Clean Vehicles Directive, Energy Star Regulation, and EPBD Directive

Revision of EU Procurement Directives

• Directives 2004/17/EC & 2004/18/EC which regulate how public and semi-public bodies must carry out procurement, are currently under revision

• EC published proposals in December 2011. Main aims:• to improve the efficiency of current procedures • to allow for greater strategic use of public procurement to further

environmental, social and industrial/innovation policies

• Now put forward for adoption by the Parliament and Council

Revision of EU Procurement DirectivesMain proposed changes relevant for SPP:

• Increased scope for contracts to be reserved for enterprises employing disabled or disadvantaged workers (Article 17);

• Explicit recognition that technical specifications may include reference to the production process or any other stage of the life-cycle for all types of contract (Article 40);

• Possibility to refer to specific environmental or social labels in technical specifications (Article 41);

• Ability to invoke non-compliance with EU or international social and environmental law as grounds for refusal to award a contract to a tenderer (Article 54.2);

Revision of EU Procurement DirectivesMain proposed changes relevant for SPP (cont.):

• Ability to exclude a candidate  from a competition on the basis of violations of EU or international environmental or social obligations (Article 55.3(a));

• Explicit recognition that life-cycle costing (LCC), including external environmental costs, may be an award criterion and introduction of rules regarding the calculation of LCC (Article 67);

• Recognition (as in the current Directive) that contract conditions may include social and environmental requirements (Article 70)

EU GPP Communication

Communication “Public procurement for a better environment” (COM (2008) 400)

•Indicative target of 50% Green Public Procurement (GPP) across EU by 2010

•Outlines the key tools to boost GPP across the EU:• Common GPP criteria• Use of life-cycle costing (LCC)• Provision of clearer legal guidance on how to implement GPP

•19 product and services currently covered – available in all EU languages• Accompanied by a technical background document indicating how they

were developed

What help is available?

• European Commission: Buying Green! Handbook, second edition 2011: http://ec.europa.eu/environment/gpp/buying_handbook_en.htm

• European GPP criteria for 19 product and service groups http://ec.europa.eu/environment/gpp/eu_gpp_criteria_en.htm

• Procura+ Manual – A guide to cost effective sustainable public procurement:http://www.procuraplus.org/en/about-procura/procura-manual/

ICLEI’s help

• The Procura+ Campaign: an initiative designed to help support public authorities across Europe in implementing sustainable procurement – and help promote their achievements. http://www.procuraplus.org

• Training: Training: ICLEI carries out sustainable procurement training activities across Europe, including an extensive training programme for the German Environment Agency

From timber procurement to Sustainable From timber procurement to Sustainable (Green) Public Procurement of wood (Green) Public Procurement of wood products...products...a quick view at EU levela quick view at EU level

GPP for timber products in EU countries (1/3)

GPP policies for wood products

GPP criteria for some wood products

Source: Oliver, 2009; Nielsen, 2011

GPP for timber products in EU countries (2/3)

FRA GER BEL DK UK NL

Central/federal governments

Compulsary Compulsary CompulsaryCompulsary

for paper and wood

Compulsary Compulsary

Local Administration

Guidance & promotion

Guidance & promotion

Guidance Guidance & promotion

Guidance & promotion

Guidance & promotion

Procurement share

Up to 25% Federal: 5%, > in the other

Land

Min 5-10 % 15-25% (tropicale timber)

Min 8%-15% N/A

Source: FFI, 2009; Nielsen, 2011

GPP for timber products in EU countries (3/3)

Source: FFI, 2009; Nielsen, 2011

FRA GER BEL DK UK NL

Requirements Legality with preference for sustainability

Sustainability SustainabilityLegality with

preference for sustainability

Sustainabil. or FLEGT licenses

Sostenibilit.

Do de Gov. Defines procurement criteria?

No N.A. YES YES YES YES

Tropical Timber consumption of EU countries

Source: IDH 2012

• 5-10% of all primary tropical timber in the world (excluding secondary processed timber) is imported by EU countries

• The average of government purchasing of tropical timber is in the range of 5-20% :France 25%Germany 5%Belgium 10%UK 15%.

PP an tropical timber

Sustainable Public Procurement:

What‘s the potential in this What‘s the potential in this country?country?