SUSTAINABLE PROCUREMENT: STRONG ENOUGH AS A POLICY TOOL?

Abdullah KORKMAZ Legal Advisor, Ministry of Interior TURKEY Dublin, 15.08.2014

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What is sustainability?

Key components of sustainability:

Social, economic and environmental.

The integration of sustainability criteria into public procurement is an opportunity to further sustainable development.

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SP is the process of acquiring goods, services, and works that:

Meet users’ needs

Deliver long term value for money

Maximise social and economic benefits

Minimise damage to the environment and health

What is sustainable procurement?

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Three pillars of SP

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Environmental LCC (Source: http://ec.europa.eu/environment/gpp/lcc.htm)

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Life-Cycle Cost

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Whole-of-life costing elements over time

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Needs assessment

Technical specifications

Selection stage

Award stage

Effective contract management

Monitoring and evaluation

Sustainability in the procurement process

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Procurement process and SP

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Waste reduction

Innovation/ “pre-commercial procurement”

Supporting local economy

Fair trade

Promotion of skills and training

Reducing cost

Race and gender equality

More social considerations…

Achieving wider policy objectives

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Strategic steps

Adopt a sustainable procurement policy

Leadership and commitment from senior managers/policy-makers

Mandatory SPP requirements

Dialogue with suppliers

Check for sustainability throughout procurement cycle

«Joint procurement» by public administration authorities

Practical tools for procurement officers

Awareness raising activities and training 12

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Challenges of sustainable procurement

Lack of political support

Lack of legal expertise in applying criteria

Lack of practical tools and information

Lack of training

Lack of cooperation between authorities

Perception of financial burden

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UNEP/Wuppertal Institute, Consumption and Production (CSCP), 2010

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United Nations

OECD

WTO/GPA

EU Policy/Directives

Others…

International Policy Framework

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Helsinki awarded contract for operation of urban bus route to HKL challenged by Concordia:

level of nitrogen oxide emissions and noise level of buses

ECJ allowed ecological award criteria:

are linked to the subject matter of contract,

do not confer unrestricted freedom of choice,

specified in tender notice or documents,

comply with EU law principles,

ECJ: No discrimination even though criteria limit number of tenderers

ECJ, C-513/99, Concordia Bus

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‘Europe 2020 Strategy’

“Europe 2020 Strategy” for:

smart,

sustainable

inclusive growth

was adopted in 2010 by the European Council

The main goal of the Strategy is to help recovery from the crisis by boosting competitiveness, productivity, social cohesion and economic convergence.

It is explicitly acknowledged that these challenges must be addressed in a sustainable manner.

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National Action Plan or equivalent document adopted

22: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Latvia, Lithuania, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, UK

No existing NAP 6: Croatia, Estonia, Greece, Hungary, Luxembourg,

Romania

National Action Plans (NAPs) – in Member States/May 2014

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Public procurement is becoming a policy strategy instrument.

The key points:

1. Environmental and social record

2. Sustainable production practices

3. Use of eco-labels

4. Lowest price award and life-cycle costing

The new directive gives greater prominence to LCC as a means of calculating costs, including environmental externalities such as greenhouse gas emissions and climate change mitigation costs.

New EU Directive (2014/24/EU)

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Eco labels

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1. Copying and graphic paper

2. Cleaning products and services

3. Office IT equipment

4. Construction

5. Transport

6. Furniture

7. Electricity

8. Food and Catering services

9. Textiles

10. Gardening products and services

11. Windows

12. Thermal insulation

13. Hard floor-coverings

14. Wall Panels

15. Combine Heat and Power (CHP)

16. Road construction and traffic signs

17. Street lighting and traffic signals

18. Mobile phones

19. Indoor lighting

EU priority sectors for implementing GPP

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As an example of weak policy implementation: Turkey case

Current Turkish PPL has not cover detailed/direct green or social provision.

Environmental Impact Assessment (EIA) Report,

2% of public employees have to be disabled,

Political/administrative support and commitment

More compatible law is necessary

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SP: a cost-efficient policy tool in practice?

SP is still relatively new (emerging in the mid 1990’s)

SP can contribute for the delivery of a wide range of government policy objectives.

SP is a voluntary instrument principally

SP policy results are borderless.

SP is the way of future.

Conclusion

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Purchasing the future!

“Treat the earth well: We do not inherit it from our ancestors, we borrow it from our children.” Native American Proverb

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THANKS FOR YOUR LISTENING!

Abdullah KORKMAZ

Legal Advisor, Ministry of Interior

Ankara-TURKEY

Tel : (Mobile):+90 505 4668501

E-mail: akorkmaz68@hotmail.com

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