Sustainable Public ProcurementSwedish experience of implementation

Jon Lyons – Country Representative, Mongolia

26 November 2015

Public Procurement & Green Growth

Rio ‘92 – Brundtland (N) defined ‘Sustainable Development’

• Conceptual foundation of ‘Green Growth’

Green Public Procurement• Using public funding for environmental

considerations in procurementGreen Growth Procurement

• Combining poverty reduction with climate change mitigation by including environmental, social, and other relevant criteria in procurement

• Preferably making use of procurement for innovation (PFI)

Remember – conflicts will increase as natural resources become scarce and natural disasters increase

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 490

10

20

30

40

50

60

Influence over time

Influence over timeTime

Influence

Why does Procurement Play a Role?

Sweden – Context for Success Story

• 10 million people• 450,295 square

kilometres (the 55th-largest country in the world)

• 1,572 km north to south• HDI (2013) 0,898 (very

high – 12th)• GDP (2014) $570.6 bn

(21st)• Four distinct seasons –

average 20 to 25 °C (38 °C) to −4 to 2 °C (−52.6 °C)

• Constitutional monarchy• Parliamentary democracy

GGGI expert: Mr. Sven Erik Hargeskog

• Procurement for• Value for money• Business development• Green and CSR improvements• Innovation• Growth in developing countries

• Experience from• Private sector

• Small/medium/large• Services/manufacturing industry

• Public sector• Central government

• Developing new functions• In-house procurement

services• Coordination of

government procurement• Green public procurement• Procurement for

innovation• Senior advisor to EU, OECD, UN, misc.

Governments…

Green Growth

Sweden – How did SPP process start?

Support of those responsible for Government in-house procurement:• 450 central government agencies

• Specifications/TORs• Framework Agreements• Advice

= Critical mass for green procurement

Consequently, government investigation was initiated:

Ecologically Sustainable Procurement• Three years• Selected members &

experts• How to increase green

procurement

Sweden – ES Procurement Results

Report with recommendations• Create a lead organization• Develop a toolbox for

specifications• Develop LCA1 tool for Total Cost of

Ownership (TCO)• Provide training and advice• Support and promote Eco-labels• Assign pilot procurement

authorities• Annual conference with prize

award

1 Life Cycle Analysis

H.E. Crown Princess Victoria of Sweden

Sweden – Lead PP Organization

• Swedish Environment Management Company

• Limited company (90% public, 10% private)– Now integrated into the Swedish National Agency for Public Procurement

• http://www.upphandlingsmyndigheten.se/en

• Two areas:–Public Procurement–Sustainable Public Procurement

–To emphasize the importance of the latter

• Toolbox, LCA, support/help-desk, advice, etc.

Sweden – SPP Toolbox• In compliance with the Public

Procurement Laws• Open for all• >100 specifications, many in

English• Three levels:

–Basic–Advanced–Spearhead

• Prioritization on development:–Low hanging fruits–High volume–Big impact

Sweden – Other tools & activities

• TCO/LCC calculating• CSR compass• Eco-labels (as proof of compliance)• Annual Prize award (I’m in the jury)

–Best sustainable public procurement organization–Most sustainable tenderer to public sector

• Pilot authorities for green procurement– by government decree• Obliged to use green criteria–Proficient buyers–Large volumes–Big impact – also on the whole market and consumers

• Annual report• Initially 10• Increased successively to 25, 100, then all

Sweden – Other key actor

The Swedish Energy Agency• Lower energy consumption• Test lab• Labelling • Competition with published

and marketed results• Advisory services and web-

support

Recommendations - Roadmap

• Establish a lead organization• Create incentives

–Buyers–Supplier market

• Find or create critical mass• Cooperate• Consider subsidies• Put it on the political agenda• International benchmarking• Enable in PP Law• Communicate (e.g. Eco-labels)• Invite external ‘ambassadors’

Be persistent – it takes time

Recommendations – After 1st Phase…

• Procurement for innovation–Open up for green innovations

• Grants for local green-tech companies (SME, micro enterprises)–Export opportunities – a huge potential

–Based on Mongolia’s unique prerequisites

Баярлалаа!

Thank you for your attention!

Global Green Growth Institutewww.gggi.org

GGGI Mongolia contacts:Country Representative – jon.lyons@gggi.org