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Promoting Cleantech in Public
Procurement and Investments in Finland
Katriina Alhola, Senior researcher, Dr.
Finnish Environment Institute, SYKE
IPPC6, Dublin,15.8.2014
Agenda
• Background
• Cases
• Challenges
• Solution
Focus on CLEANTECH
3
● Cleantech includes products, services, technologies and processes
that
○ Improve the sustainable use of natural resources
• Energy efficiency
• Material efficiency
○ Greatly reduce (or eliminate) negative
environmental impacts
○ Compete favorably on price and add economic
value
○ Represent innovative or novel solution
● Cleantech is globally a growing sector and
especially important in Finland in terms of
○ Raising employment rate
○ Creating (export) markets for SMEs
Various definitions exist for cleantech, see for example: Stack, J., Balbach, J., epstein, B. and
Hanggi, T., 2007. Cleantech venture capital: How public policy has stimulated private investment.
Environmental Entrepreneurs, Report May 15, 2007.
Cleantech in public procurement
4
● Finnish Government has set an objective of 350 million €, i.e.
1 % of the total value of nation’s annual public procurement
expenditure to be targeted to cleantech solutions
● Cleantech can be applied to different sectors, but
○ Construction
○ Energy
○ Transport
○ Waste management
have been recognized most suitable for
cleantech solutions
Finnish cleantech procurement cases
(examples)
5
Solar energy based
swimming hall, Pori
Eco-efficient office
”Synergia”
Street lighting (ESCO
based), Turku
Investments in energy
efficiency (ESCO), Vantaa
Planning of ”almost zero
energy” kindergarten,
Vantaa
Collection system for
source-separate household
waste, Porvoo
Cleantech – not only the technology but the procurement process as well
● Consider LCA based environmental impacts as part of the
procurement already in the planning phase of the process
● Use LCC and environmental calculators/ tools to measure
life-cycle-costs and energy and material efficiency and other
environmental impacts
● Examine novel solutions that exist or could be created in the
market instead of procuring traditional solutions
● Benefit from networks and best practices in the field of
cleantech (in Finland for example, Motiva’s helpdesk)
6
How to put CLEANTECH –procurement
into practice?
7
Successful cleantech investment needs
dialogue between different stakeholders
What is
cleantech?
What are the
potential risks and
drawbacks in
cleantech option
and how they
could be reduced?
Which
environmental
impacts should
be taken into
account and how
could they be
measured?
Where should
we start –are
there any
cleantech
solutions
available?
We have an
innovative solution
but we need user
references
We have no idea
of what new
needs the public
authorities might
have in the near
future.
What could be
the focus of
our R&D?
This was an
excellent cleantech
procurement case
We know how
this could be
solved
Procuring
unit
Experienced procuring units
Universities
Experts, consultants
End users
Etc…
Suppliers,
Start-ups, SMEs
Market
dialogue,
sharing of
experience,
co-operation
and support
Internet based
Decision support system for innovative
public cleantech procurement
”Cleantech procurement folder”
8
OBJECTIVES:
● Exchange of knowledge between purchasers, suppliers, industry experts and
other stakeholders
○ Realised procurement cases
○ Intented procurement needs
● Information on best practices and their success factors, and experiences on
innovative procurement process
● Making environmental and economic benefits of cleantech procurement visible
● Possibilities for joint procurement (for example the Carbon Neutral
Municipalities HINKU)
● Possibilities for new tecnological solutions and innovative financing options
● Tool for follow-up (cleantech targets)
Implementation of
”Cleantech procurement folder”
9
In two phases
1. Gathering data for the support system
○ Analysis of the realised cleantech investments in
Finland (mostly funded by Tekes Innovation
Financing Instrument)
○ Other background information
○ Defining ’cleantech’ in different product groups
2. Developing and testing the support system in
practice
○ Pilot cases, action research approach
○ Communicating the system among potential users
and other stakeholders
10
BACKGROUND INFORMATION
AND SELECTION OF CASES (i.e.
TEKES CASES AND OTHER
EXAMPLES)
WP2: ANALYSIS OF
REALISED PUBLIC
CLEANTECH CASES WORKSHOPS
(Public purchasers, bidders,
experts)
WP3: DEFINING THE
CONTENT, PRODUCT
GROUPS AND CRITERIA
FOR CLEANTECH
WP4: SELECTION OF
PILOT CASES
SELECTION OF POTENTIAL
REAL CASES FOR
IMPLEMENTATION OF
CLEANTECH INVESTMENT, AND
FOR PILOTS IN THE DECISION
SUPPORT SYSTEM
PHASE II
PHASE I
WP1: INNOVATIVE PUBLIC
PROCUREMENT IN
FINLAND
CLEANTECH Investments and processes –
Data and content for the decision support system
11
WP6: TESTING THE
PILOTS AND NEW
PROCEDURES (ESCO
TYPE SOLUTIONS ETC.)
WORKSHOPS AND GROUPS OF
EXPERTS
WP7: TESTING THE
DECISION SUPPORT
SYSTEM WITH REAL
CASES
FEEDBACK FROM USERS
WP8: COMMUNICATING
THE RESULTS AND
INTEGRATING THEM INTO
THE EXISTING NETWORKS
GUARANTEEING THE CONTINUITY OF THE USE
OF THE SUPPORT SYSTEM
PHASE II
IMPLEMENTATION OF THE DECISION SUPPORT SYSTEM
CO-OPERATION WITH OTHER
ORGANIZATIONS
WP5: PLANNING OF THE
CONTENT FOR THE
DECISION SUPPORT
SYSTEM
12
Project duration 1/2014-09/2015
Funding 535 000 € provided by:
For more information, please visit: www.syke.fi/hankintamappi
or email: katriina.alhola@ymparisto.fi

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Alhola cleantech procurement ippc6_2014-08-15

  • 1. Promoting Cleantech in Public Procurement and Investments in Finland Katriina Alhola, Senior researcher, Dr. Finnish Environment Institute, SYKE IPPC6, Dublin,15.8.2014
  • 2. Agenda • Background • Cases • Challenges • Solution
  • 3. Focus on CLEANTECH 3 ● Cleantech includes products, services, technologies and processes that ○ Improve the sustainable use of natural resources • Energy efficiency • Material efficiency ○ Greatly reduce (or eliminate) negative environmental impacts ○ Compete favorably on price and add economic value ○ Represent innovative or novel solution ● Cleantech is globally a growing sector and especially important in Finland in terms of ○ Raising employment rate ○ Creating (export) markets for SMEs Various definitions exist for cleantech, see for example: Stack, J., Balbach, J., epstein, B. and Hanggi, T., 2007. Cleantech venture capital: How public policy has stimulated private investment. Environmental Entrepreneurs, Report May 15, 2007.
  • 4. Cleantech in public procurement 4 ● Finnish Government has set an objective of 350 million €, i.e. 1 % of the total value of nation’s annual public procurement expenditure to be targeted to cleantech solutions ● Cleantech can be applied to different sectors, but ○ Construction ○ Energy ○ Transport ○ Waste management have been recognized most suitable for cleantech solutions
  • 5. Finnish cleantech procurement cases (examples) 5 Solar energy based swimming hall, Pori Eco-efficient office ”Synergia” Street lighting (ESCO based), Turku Investments in energy efficiency (ESCO), Vantaa Planning of ”almost zero energy” kindergarten, Vantaa Collection system for source-separate household waste, Porvoo Cleantech – not only the technology but the procurement process as well
  • 6. ● Consider LCA based environmental impacts as part of the procurement already in the planning phase of the process ● Use LCC and environmental calculators/ tools to measure life-cycle-costs and energy and material efficiency and other environmental impacts ● Examine novel solutions that exist or could be created in the market instead of procuring traditional solutions ● Benefit from networks and best practices in the field of cleantech (in Finland for example, Motiva’s helpdesk) 6 How to put CLEANTECH –procurement into practice?
  • 7. 7 Successful cleantech investment needs dialogue between different stakeholders What is cleantech? What are the potential risks and drawbacks in cleantech option and how they could be reduced? Which environmental impacts should be taken into account and how could they be measured? Where should we start –are there any cleantech solutions available? We have an innovative solution but we need user references We have no idea of what new needs the public authorities might have in the near future. What could be the focus of our R&D? This was an excellent cleantech procurement case We know how this could be solved Procuring unit Experienced procuring units Universities Experts, consultants End users Etc… Suppliers, Start-ups, SMEs Market dialogue, sharing of experience, co-operation and support
  • 8. Internet based Decision support system for innovative public cleantech procurement ”Cleantech procurement folder” 8 OBJECTIVES: ● Exchange of knowledge between purchasers, suppliers, industry experts and other stakeholders ○ Realised procurement cases ○ Intented procurement needs ● Information on best practices and their success factors, and experiences on innovative procurement process ● Making environmental and economic benefits of cleantech procurement visible ● Possibilities for joint procurement (for example the Carbon Neutral Municipalities HINKU) ● Possibilities for new tecnological solutions and innovative financing options ● Tool for follow-up (cleantech targets)
  • 9. Implementation of ”Cleantech procurement folder” 9 In two phases 1. Gathering data for the support system ○ Analysis of the realised cleantech investments in Finland (mostly funded by Tekes Innovation Financing Instrument) ○ Other background information ○ Defining ’cleantech’ in different product groups 2. Developing and testing the support system in practice ○ Pilot cases, action research approach ○ Communicating the system among potential users and other stakeholders
  • 10. 10 BACKGROUND INFORMATION AND SELECTION OF CASES (i.e. TEKES CASES AND OTHER EXAMPLES) WP2: ANALYSIS OF REALISED PUBLIC CLEANTECH CASES WORKSHOPS (Public purchasers, bidders, experts) WP3: DEFINING THE CONTENT, PRODUCT GROUPS AND CRITERIA FOR CLEANTECH WP4: SELECTION OF PILOT CASES SELECTION OF POTENTIAL REAL CASES FOR IMPLEMENTATION OF CLEANTECH INVESTMENT, AND FOR PILOTS IN THE DECISION SUPPORT SYSTEM PHASE II PHASE I WP1: INNOVATIVE PUBLIC PROCUREMENT IN FINLAND CLEANTECH Investments and processes – Data and content for the decision support system
  • 11. 11 WP6: TESTING THE PILOTS AND NEW PROCEDURES (ESCO TYPE SOLUTIONS ETC.) WORKSHOPS AND GROUPS OF EXPERTS WP7: TESTING THE DECISION SUPPORT SYSTEM WITH REAL CASES FEEDBACK FROM USERS WP8: COMMUNICATING THE RESULTS AND INTEGRATING THEM INTO THE EXISTING NETWORKS GUARANTEEING THE CONTINUITY OF THE USE OF THE SUPPORT SYSTEM PHASE II IMPLEMENTATION OF THE DECISION SUPPORT SYSTEM CO-OPERATION WITH OTHER ORGANIZATIONS WP5: PLANNING OF THE CONTENT FOR THE DECISION SUPPORT SYSTEM
  • 12. 12
  • 13. Project duration 1/2014-09/2015 Funding 535 000 € provided by: For more information, please visit: www.syke.fi/hankintamappi or email: katriina.alhola@ymparisto.fi