Thematic Seminar 5-Achieving Energy Efficiency through Sustainable Public Procurement (SPP)

Natalie Evans, SPP Project Officer

ICLEI – Local Governments for Sustainabilitynatalie.evans@iclei.org +49-761/368 92-48

ICLEI – an introduction

Serve a worldwide movement of local governments to achieve tangible improvements in global sustainability

12 mega-cities 100 super-cities and urban regions 450 large cities 450 small & medium -sized cities and

towns

- www.iclei-europe.org/

1996 - Mandate to work on SPP

1996 - Set European SP Exchange network

1998 - 1st European sustainable procurement conference

2004 - Launched European SP Initiative

2009 - Developed the EC GPP Toolkit Member of the EC

2010 - Launched the Procurement Forum

2011 - Developed EC GPP Handbook

2011 - Launched SP Resource Centre

Member of the EC’s Public Procurement Stakeholder Group and

GPP Advisory group

ICLEI and Sustainable Public Procurement (SPP)

Objectives of the Seminar

Convey the relationship between SEAPs &SPP

Look at how SPP can facilitate successful SEAPs

Encourage a harmonisation of specific aims across municipal departments

Highlight relevant resources and support available to all public administrations

Emphasise the importance of; networking, information exchange & replicating good practice.

Structure

Introduction

Session 1 – Transport and mobility

Session 2 – Construction and maintenance

Session 3 - Electricity and CHP

Summary and context

Introductory Presentation

Sustainable Public Procurement (SPP) Definition

Legislation

Power of SPP

Implementing SPP – The basics

Procurement methods to promote SPP

Relationship between SPPs and SEAPs

Definition

Sustainable Public Procurement is often described as being comprised of three main elements, fundamental to sustainable development.

Sometimes referredto as the “triple bottom line”

Legislation

Legal framework for PP is defined by: Treaty of the Functioning of the EU

EU Procurement Directives

• Value for money

• Acting fairly

Revision of procurement directives finalised in June 2013– more clarity and scope for using

• Life Cycle Costing (LCC)

• Ecolabels

What can SPP achieve?

Major reductions in energy use and CO2 emissions – Passive construction, highly-efficient lighting, low energy ICT equipment

Development of new environmental technologies & new ways of carrying out services

Improvements in air & water quality, reduce waste generation – low emission vehicles, bio-based products and closed loop systems.

Save money – meet your needs more efficiently. Consider the real costs over the life cycle

Power of public procurement

Public procurement represents approximately 19% of GDP in Europe

Huge range of spend areas – from paper to huge infrastructure projects

5 – 15% market share for most goods and services – in certain areas much higher

Huge potential to drive the development of sustainable and innovative solutions

The Procura+ milestone approach

Implementing SPP

The essentials for each tender:• Carefully define subject matter• Consider output-based specifications• Include GPP technical specifications and award

criteria• Make a business case for GPP based on LCC

Procurement methodologies to promote SPP• Energy Performance Contracts• Competitive dialogue • Market engagement – “meet the supplier”• Design competitions

National Action Plans & Support

Country Action Plan

Bulgaria In progress (Ministry of Economy and Energy, Ministry of Environment and Water, Council of Ministers and Public Procurement Agency)

Germany Adopted and legally binding for timber and LCC

Ireland Adopted

Lithuania Adopted

Slovenia Adopted

UK Adopted

See http://ec.europa.eu/environment/gpp/action_plan_en.htm for full details on each Member state’s national action plan

SPP in Scope 1, 2 and 3

Session 1: Mobility & Transport

Sector specific legislation

How economically and environmentally sustainable procurement can achieve energy efficiency

Related projects, guidance and assistance

Sector-related Legislation

Clean Vehicles Directive (CVD)

Euro Standards – continuously updated in EU law. Currently Euro 5 for cars, Euro 6 for heavy duty vehicles i.e. buses

CO2 emissions must be “labelled”

New legislation – “Clean Power for transport Package” to encourage alternative fuels.

Clean Vehicles Directive

3 methodologies:• Technical Specifications• Award Criteria• Life Cycle Costing (LCC) monetising different

pollutants (including CO2, PM, NOx, NMHC)

“Clean Fleets” project [www.clean-fleets.eu ]• Training • Workshops, thematic groups• Direct tender assistance

Using SPP to achieve energy efficiency

Demand Management

• Holistic thinking

• Defining need-

Market dialogue

Joint Procurement

Research

• Internal need

• Market availability

Freight Consolidation/ Distribution hubs

Bath & North East Somerset, UK

Stockholm, Sweden

Transport for London, UK

Utrecht, Netherlands

Bremen, Germany

Bristol, UK

Norfolk, UK 

Växjö, Sweden

York, UK 

Case studies

Stuttgart – Electric vehicles for their sewage treatment plant

Sweden - Joint national procurement of electric vehicles

Oslo – Framework agreement for electric vehicles

Ljubjana, Slovenia – Public procurement of hybrid cars

Berlin, Germany – Using LCC to purchase energy efficient police cars

Session 2: Construction & Maintenance

Sector specific legislation

How sustainable and innovative procurement can achieve energy efficiency

Related projects, guidance and assistance

Sector-related Legislation

Energy Efficiency Directive adopted October 2012, Central Governments have 18 months to comply.• 3% total floor area

renovated each year• There are also energy efficiency requirements

for products, services and buildings.

EU Timber Regulation (EUTR) adopted 2010, came into force this month (March 2013)• Due diligence – every effort to ensure legality

Using SPP to achieve energy efficiency

Being an intelligent client• Consulting end users• Bringing in external experts

Setting targets and requirements• Energy performance targets• Performance based specifications

Choosing appropriate procurement models• Energy performance contracts• Design competitions

• Monitoring and management!

Case studies from around Europe

Rotterdam pools-Energy Performance Contract (EPC)

Jyvaskyla, Finland – LCC+ Sharing responsibility

Koprivnica, Croatia - Developing the market for passive housing construction

Vorarlberg, Austria – strict technical specs

Scope 3 emissions:• Cornwall – Low

carbon bus shelters• Hamburg – 100%

recycled asphalt, including bitumen

Projects, guidance and support

Sustainable Construction and Innovation (SCI) Guide & Snapshots

Smart SPP Guide

Euro Topten Max Project – direct assistance, procurement guidelines, sample tenders & online searchable database

Sustainable Timber Action (STA) – direct assistance & online toolkit

Session 3: Electricity and CHP

Sector specific legislation

How green public procurement can achieve energy efficiency

Related projects, guidance and assistance

Sector-specific Legislation

Renewables Directive (2009/28/EC) = 20% share of energy from renewable sourced by 2020

Cogeneration Directive (2004/8/EC) HE CHP saving of at least 10% compared to separate heat and power

Green criteria for electricity & CHP

Electricity Core – At least

50% from RES-E + additional points in award criteria fro +% or HE CHP

Comprehensive – 100% from RES-E

Verified using Guarantee of origin schemes

CHP 70% - 80% minimum

overall efficiency depending on capacity

For High Efficiency CHP – at least 10% energy saving compared to separate heat & electricity production

Case studies

Public Procurement Agency, Slovenia – Specified at least 30% renewable energy for a 2 year electricity contract and offered additional points for more.

Waterford, Ireland - Supply of electricity to civic offices, fire stations, libraries, water pumping stations and sewage pumping stations. 3 of 5 lots specified green electricity.

Bremen, Germany specified 100% electricity from renewable sources. Preliminary market research.

Related projects, guides & assistance

GPP 2020 – will focus on energy related products, services and works:• Capacity building & knowledge transfer• Training• Tender support

EU GPP Buying Green! handbook

GPP criteria – Developed by experts for DG Environment, encourage stakeholder involvement

Final discussion points

1) In general, which SEAP energy sectors would benefit most from an increased focus on SPP?

2) To what extent have/will you integrate SPP considerations into your own SEAP?

3) Do you have examples of good practice SPP related to energy efficiency and/or reduction of energy use from your own/ other administrations?

Conclusions

SPP can help facilitate SEAPs therefore departments responsible for both should collaborate, preferably under a harmonised strategy.

There is a great deal of guidance, training, information on good practice, direct assistance and networking opportunities available – let’s make the most of them!

Possible actions to take…

Form a working group, harmonise strategies & priority areas or at least consult appropriate procurement departments during the planning stages of any relevant action

Take a look into resources and initiatives that may be of benefit to your organisation or encourage the relevant people to do so.

Push your SEAP a stage further by including scope 2 or 3 emissions to a greater extent.

Consider joining the Procura+ Campaign!

The Procura+ Campaign

Procura+ is an initiative designed to offer direct

support to public authorities in implementing

sustainable procurement, facilitate exchange

and promote achievements internationally

Procura+ Chair and Vice Chair

Vice Chair Mercè Rius i Serra, Deputy President for Environment, Province of Barcelona

Chair Pekka Sauri, Deputy Mayor, City of Helsinki

Vice Chair Lari Pitkä-Kangas, Municipal Commissioner for Urban Ecology and Sustainable Development, City of Malmö

The Procura+ Manual

English, French, Italian, German, Greek & Catalan

Available free as a hard copy and pdf

www.procuraplus.org

Procura+ participants

35 participants

14 Countries

Largest: 7,000,000

Smallest: 10,000

Does it work? A small selection...

City of Kolding: changed nearly 100% of its purchasing policies to include environmental considerations.

City of Barcelona: in 2010 spent €43 million on green products and €92 million on “greened” services (e.g. lighting, fountain maintenance)

City of Rome: 69% of the 144,000 meals served by the city each day contain organic food

For more examples:

www.sustainable-procurement.org/about-spp/spp-in-action/

What do participants get?

Guidance and advice

A systematic implementation model

Opportunities to share with other public authorities

The latest news, tools and guidance material

Priority for project participation and presenting

Promotion, representation and advocacy

To participate:

Report on progress to ICLEI

Contribute an annual participation fee

Procura+ Exchange 700 subscribers from 40 countries

English, German and French

Annual Procura+ seminars

EcoProcura conference series (www.ecoprocura.eu)

Exchange

Sustainable Procurement Resource Centre (SPRC)

One-stop access point for procurers, policy makers, researchers and other stakeholders.

Get the latest news and events, take advantage of networking opportunities and tap into an extensive searchable database of:

- procurement criteria- policies and strategies - tools and guidance- good practice- studies and reports - labels - useful links

www.sustainable-procurement.org

Thank you

Natalie Evans

natalie.evans@iclei.org

www.procuraplus.org

www.sustainable-procurement.org