Conference: Strategies to Promote sustainable Consumption 23 rd and 24 th April 2012, New Delhi Green Public Procurement and India Do we start or Restart? By Shantanu Roy Green Purchasing Network India an initiative of Environmental Management Centre LLP shantanu.roy@emcentre.com 1
Public Procurement – Indian Legislative Framework • PP is Well regulated • Decentralized Approaches – Indian Contracts Act, 1872 – Each purchasing organization has – Sale of Goods Act, 1930 developed documented policy guidelines regarding purchase – General Financial Rules, 1963 – Delegation of Financial Power Rules, 1978 – Directorate General of Supplies & – The State governments/GOI Disposals (DGS&D) Manual on Public Sector Units (“CPSU”) have Procurement their own general financial rules – Central Vigilance Commission (CVC) based on the broad principles Guidelines outlined in the GFRs • Responsibilities are assigned • Financial powers defined • Bulk procurements done through specialized agencies like Directorate General of Supplies & Disposal (DGS&D) GPNI @ EMC LLP 2
Public Procurement: Selection and award criteria • Adequate information and • Generally governed by the announcement made available; applicable financial rules • Non-discriminatory practices to • The lowest evaluated tender is provide equality of opportunity, the primary award criterion transparency in bidding, as well as in the evaluation process; • National defence and security considerations are overriding • Accountability ; and factors • Non-restrictive bidding conditions to unlock the particular market GPNI @ EMC LLP 3
Barriers to GPP • No regulatory push to promote Green Purchasing • E&S disjoint from GP – Procurement staff not fully aware of environmental issues and environmental staff not fully integrated into the purchasing process • Procurement process often complex, involving different geographic regions and business units, each with own special characteristics • Difficult to evaluate what is “ greener ” than something else • Procurement department “ cost first ” mindset GPNI @ EMC LLP 4
Green Public Procurement: Key Challenges Integration Expertise Resources Data GPNI @ EMC LLP 5
A quick case on GPP in Japan GPNI @ EMC LLP 6
Green Purchasing Initiatives in Japan • Green Purchasing Law – ‘Law Concerning the Promotion of Eco-Friendly Goods and Services by the State and Other Entities’ enacted in 2000 and enforced since 2001 • All state ministries & agencies must draw up annual green procurement policy, implement plan and report results – All state institutions obliged to purchase designated procurement items • All central government ministries, 47 prefecture governments, 12 designated cities and 68% of local governments and cities undertook green purchasing • Collectively 95% of purchased products in designated categories were green. GPNI @ EMC LLP 7
Green Purchasing Initiatives in Japan • Eco Mark Programme – ISO Type I environmental label – Established by Japan Environment Association (JEA) and widely used since 1989 – Currently over 4,400 certified products in 48 categories – Criteria corresponds to those of Green Purchasing Law in many product categories. Thus, they’re often used as guides for GPP • Green Purchasing Network (GPN) – Founded in 1996 by governments, businesses and associations – Currently has 2,920 members (2,381 companies, 268 governments, 300 NGOs) – Established 15 purchasing guidelines, green products database (13,000 products registered), green hotels & inns database, award system, training/seminars, etc. GPNI @ EMC LLP 8
Green Public Procurement So where do we (Re)start? • Define the key tenets of GPP in Indian context ( Principles ) • Promulgate GPP Policies • Develop guidelines Use of supporting tools • • … GPNI @ EMC LLP 9
GPP Principles: the US-EPA guiding principles on EPP • Guiding Principle 1: Environment + Price + Performance = Environmentally preferable purchasing (EPP) • Environmental consideration should become part of normal purchasing practice, consistent with such traditional factors as product safety, price, performance, and availability. • Guiding Principle 2: Pollution prevention • A key reason for EPP is to protect the environment by reducing waste and pollution at the source with the resulting benefit of reduced overall cost to the government and the public. Thus, consideration of environmental preferability should begin early in the acquisition process and be rooted in the ethic of pollution prevention. • Guiding Principle 3: Life-cycle perspective and multiple attributes (e.g. increased energy efficiency, reduced toxicity) • Agencies are required to consider the life-cycle perspective and the multiple environmental attributes in applying the principle. GPNI @ EMC LLP 10
GPP Principles: the US-EPA guiding principles on EPP • Guiding Principle 4: Comparison of environmental impacts • In comparing environmental impacts, agencies should consider the reversibility and geographic scale of the environmental impacts, the degree of difference among competing products and services, and the overriding importance of protecting human health. • Guiding Principle 5: Environmental performance information • To determine if a product or service is environmentally sound, agencies must have comprehensive, accurate, and meaningful information about the environmental performance of products and services. Agencies are encouraged to seek, and product and service providers are encourage to provide, life-cycle-based information about the environmental performance of products and services. GPNI @ EMC LLP 11
Status Assessment: the Zeroeth Step! Mainstreaming GPP Policy Review Gap analysis in national policy and strategy frameworks Mapping of - with an eye to current policies create a Identification of and strategies conducive GPP specific policy that has policy framework items that relevance to the - identifying facilitate the promotion of options for promotion of GPP Sustainable improving Products policies GPNI @ EMC LLP 12
How much ‘Green’ is ‘Green’? • Products and services – That are environmentally friendly and socially non- discriminating • Environmentally friendly relative to those available – Have lesser / reduced impact on human health and environment than other product that perform similar function • conservation of energy and water • minimized generation of waste and releases of pollutants or emissions • be recyclable or themselves be made from recycled materials; and • use energy from renewable sources • Behind every product there’s a ‘past’ and a ‘future’ – The life cycle GPNI @ EMC LLP 13
Mapping of current Policies and strategies that has relevance to the promotion of GPP • Leveraging on the Existing Procurement Policies for Promoting GPP – Encouraging khadi products – Specialized system of reservations for handloom sectors – Products from Small Scale Industries are preferred in some notified items – Protection is provided to the domestic industry in recognition of high costs, like input costs, interest rates, etc. • Many of the International Conventions / Agreements Ratified by India have the tenets of GP – UNFCCC– Kyoto Protocol, Basel Convention, CITES, Montreal protocol, MARPOL, ILO GPNI @ EMC LLP 14
Mapping of Driving forces in augmenting the agenda of GPP • Pollution Prevention / Cleaner Production Focus – Policy framework has been developed to complement the legislative provisions – National Conservation strategy and Policy Statement on Environment – The Government has initiated efforts in identifying Green Product Manufacturers GPNI @ EMC LLP 15
Mapping of Driving forces in augmenting the agenda of GPP • National Action Plan on Climate Change (NAPCC) has been notified – Stress on demand-side management in the use of energy and natural resources in consumption sectors (Energy Efficiency) – Emission reduction in the production sectors contingent on transfer of new technology and finance (Cleaner Technology) GPNI @ EMC LLP 16
Mapping of Driving forces in augmenting the agenda of GPP • Energy Conservation – Energy performance standards and labelling for equipment and appliances already is in place – Through the notification of standards of energy efficiency empowering Bureau of Energy Efficiency (BEE) – BEE is empowered to prohibit manufacture or sale or purchase or import of specified equipment or appliance unless such equipment or appliance conforms to energy consumption standards GPNI @ EMC LLP 17
GPP supporting Tools • Reviving the Ecomark • Synergy between GPP and Ecomark has to be established – Interanationally, it has been observed that GPP and eco-labeling work hand-in-hand and complement each other in filling the information gap • Adoption of Ecomark criteria in the tendering language and technical specifications for facilitating public procurement – Direct identification of ecomarked products as green products • GPP and eco-labeling programmes often look at each other in deciding future product categories to work with • GPP may significantly increase consumer awareness of eco- labeling programme GPNI @ EMC LLP 18
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