European Commission

How Green is your Public Procurement ?

"Green public procurement means that public purchasers take account of environmental factors when buying products, services or works".

Green Public Procurement - an introduction

Green Public Procurement is much more than just purchasing recycled paper for offices. It is about tapping into a huge market where the environmental impact related to the production, transportation, use and disposal of goods and related services can be reduced.

Public authorities in Europe have a purchasing power equivalent to 16% of the EU's gross domestic product. By using their market leverage to opt for goods and services that also respect the environment, they can have a major influence on suppliers and stimulate the production of more sustainable goods and services. Examples include more energy efficient school buildings, energy-saving streetlights, catering services offering organic food, and less polluting public transport. By giving a clear signal to all parties involved in the procurement process, public authorities can draw new environmental technologies into the marketplace that in turn have the potential to strengthen the competitiveness of European industry.

Green Public Procurement will also help EU Member States meet obligations for energy-efficiency in buildings, energy services and reduced CO 2 emissions. The potential of this instrument is enormous and I recommend that public administrations, at all levels, turn policy into practice and demonstrate their willingness to 'green' Europe.

Background

Public procurement is the process used by governments, regional and local public authorities or bodies governed by public law (financed, supervised or managed for more than 50% by public authorities) to obtain goods and services with taxpayer money (An informative video presentation explains in detail the purpose and use of Green Public Procurement.).

Detailed rules for public procurement have been established at national and European level to ensure best value for money, equal treatment of bidders, and transparency of specifications and criteria. 'Best value' in this sense can mean best prize, best quality, best aesthetic value, etc. But it can and should also include best environmental value.

Who do these rules apply to?

  • Contracting authorities : National, regional or local authorities and so-called bodies 'governed by public law'. These are bodies established for the specific purpose of meeting needs in the general interest, but without an industrial or commercial character and for the most part financed, administered or supervised by public authorities.

  • Contracting entities : All entities operating in so-called 'special sectors', namely: water, energy, transport and postal services. Even if the operating entities in those sectors are not necessarily any longer public authorities or bodies governed by public law, they provide public services and remain fairly dependant on public money. They are therefore often subject to similar, albeit less restrictive, rules.

GREEN Public Procurement means that contracting authorities and entities take environmental issues into account when tendering for goods or services. The goal is to reduce the impact of the procurement on human health and the environment.

Examples of Green Public Procurement

  • energy efficient computers
  • energy efficient buildings
  • environmentally friendly public transport
  • recyclable paper
  • organic food in canteens
  • electric cars
  • office equipment made of environmentally sustainable timber
  • electricity stemming from renewable energy sources
  • air conditioning systems complying with state-of-the-art environmental solutions
  • and many, many more!

GPP should not be mistaken with Sustainable Public Procurement , which adds social and ethical issues to environmental ones. However, many public authorities adopt an integrated approach by promoting sustainable public procurement (more).

Main benefits of GPP

Environmental benefits

  • Achieves environmental targets thanks to the financial power of public authorities
  • Sets an example which eventually leads to change in neighbouring communities and among private consumers
  • Raises awareness of environmental issues locally

Economic benefits

  • Increases competition and reduces prices in the field of environmental technologies
  • Provides incentives to industry – especially SMEs – to develop 'green' technologies and promote them in the market place
  • Saves money and resources when the life-cycle cost of products is considered

Social / health benefits

  • Improves the quality of life – especially for local communities
  • Produces widely recognised high quality standards of products and services

Political benefits

  • Results in the public endorsement and approval of environmental protection policies and those behind such initiatives

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