Promoting Green Public Procurement (GPP).
Agenda 2030, SDG’s addressed
Every year EU member states spend overall 19 % of GDP for public procurement purposes (in Latvia 20%). Such a ratio has a considerable impact on the goods and services market, therefore, by integration of environmental considerations within public procurement it is possible not only to increase the share of environmentally friendly goods and services in the market, but also gain the financial and social benefits. Taking into account above mentioned, green public procurement becoming one of the priority instruments for EU environmental, climate and energy policy. The integration of environmental consideration within the technical specifications for procurements become as the priority task for Latvia.
The legal framework for EU member states consists of two directives, which foresees the integration of environmental considerations in the procurement process:
- Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC
- Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC
Above mentioned directives are transposed in national legislation of the EU member states.
GPP in Latvia
In 2015, the Green Procurement Promotion Plan 2015-2017 was developed in Latvia, which aimed at contributing to sustainable consumption and production through increasing the proportion of green procurement, especially green public procurement. Since October 2014 in Latvia application of green public procurement criteria is mandatory in the procurement of food supply and catering services in state and local government institutions. The current regulation (in force from 1st July 2017) extends the scope of mandatory application to additional six product groups and services. The Green procurement is one of the implementation tools of the horizontal principle “sustainable development” applied to receive the assistance from EU financial instruments.
The current regulatory instrument prepared by the Ministry of Environmental Protection and Regional Development – Cabinet of Ministers Regulation on Requirements for Green Public Procurement and Procedures for Application - came into force from 1st July 2017 and determines the requirements and criteria for green public procurement (GPP) and procedures for application. The purpose is to regulate GPP implementation, monitoring and assessment, by determining the products groups and services where application of GPP is mandatory (Annex 1 of the regulation - copying and graphic paper, office IT equipment, office furniture, food and catering services, cleaning products and services, indoor lighting, street lighting and traffic signals). At the same time regulation defines the GPP requirements and criteria for the groups of products, services and works, where GPP application is voluntary (Annex 2 of the regulation). In addition Annex 3 of the regulation defines the Methodology of Life Cycle Costs for Energy Consuming Products. To facilitate the application of regulatory framework implementing guidelines for every products groups and services has been elaborated.
Cabinet of Ministers Regulation on Requirements for Green Public Procurement and Procedures for Application
• Annex 1 of the regulation, mandatory products groups and services
• Annex 2 of the regulation, voluntary product groups, services and works
• Annex 3 of the regulation, Methodology of Life Cycle Costs for Energy Consuming Products
- Developed the ‘calculator’ of life-cycle costs for energy consuming product groups, as well as ‘calculator’ for construction life-cycle cost assessment;
- Developed and updated the implementation guidelines of green procurement and green public procurement for certain products and service groups, including core criteria in the procurement tenders;
- Prepared and submitted to the Cabinet of Ministers annual reports on the implementation of green public procurement;
- Since 2015 organised ~ 20 regular methodological workshops and training for operators and state and local government institutions on green procurement and its application in purchases. Additional seminars planned for 2018. Particular focus will be given to the food products, catering services and construction works.
- Implementation awareness raising activities for stakeholders on green procurement and green public procurement.
Measures in action:
- Development the ‘calculator’ for life cycle costs for construction works;
- Review of the regulation and guidelines
- Regional Forum 2018 on Sustainable Development for UNECE region. Presentation of the Latvian experience on GPP at session on Successful approaches to delivering on Sustainable Consumption and Production by 2030
- Baltic Sea Future Congress 2018. Presentation on Using Green Public Procurement to reach Agenda 2030
Results and impact
The share of public procurements in Latvia accounts for 20% of GDP. In turn green public procurement in financial terms reached 19% from all public procurements in 2015, however decreased to 13-14% in 2016 and 2017. The statistics about green public procurement is annually collected by the Procurement Monitoring Bureau. Proportion of Green Public Procurement is highly dependent on common procurement contracts for project financed by EU financial instruments.
Challenges and lessons learned
- There is a still perception among authorities that Green public procurement is more expensive and complicated and introduction of “green” requirements and criteria will restrict the competition and could result in an appeal of the tender results.
- The concept of “greening” of the procurement has to be already at the project planning phase. The addition of “green” requirements and criteria in a preparation of the procurement phase is difficult even impossible and will not correspond to the green procurement principles. The cooperation between project developers and procurement specialists is essential.
- The adaptation of the green public procurement requirements and criteria for the product groups and services where is no agreed and scientifically justified criteria (i.e. EC GPP criteria)
- The application of verification and conformity check procedures.
- The explanatory seminars and targeted training workshops provides an excellent opportunity on practical examples show the integration of green requirements and criteria in procurement documents and clear the uncertainties on application the principles.
Strategy and sustainable development unit
Ministry of the Environmental Protection and
Regional Development of the Republic of Latvia
Peldu str. 25,
Phone: +371 67026457