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SUSTAINABLE PROCUREMENT:
STRONG ENOUGH AS A POLICY TOOL?
Abdullah KORKMAZ
Legal Advisor, Ministry of Interior
TURKEY
Dublin, 15.08.2014
1
What is sustainability?
 Key components of sustainability:
Social, economic and environmental.
The integration of sustainability criteria into public
procurement is an opportunity to further
sustainable development.
2
SP is the process of acquiring goods, services, and
works that:
Meet users’ needs
Deliver long term value for money
Maximise social and economic benefits
Minimise damage to the environment and health
What is sustainable procurement?
3
Three pillars of SP
4
Environmental LCC
(Source: http://ec.europa.eu/environment/gpp/lcc.htm)
5
Life-Cycle Cost
6
Whole-of-life costing elements over time
7
8
 Needs assessment
 Technical specifications
 Selection stage
 Award stage
 Effective contract management
 Monitoring and evaluation
Sustainability in the procurement process
9
Procurement process and SP
10
 Waste reduction
 Innovation/ “pre-commercial procurement”
 Supporting local economy
 Fair trade
 Promotion of skills and training
 Reducing cost
 Race and gender equality
 More social considerations…
Achieving wider policy objectives
11
Strategic steps
Adopt a sustainable procurement policy
Leadership and commitment from senior managers/policy-makers
Mandatory SPP requirements
Dialogue with suppliers
Check for sustainability throughout procurement cycle
«Joint procurement» by public administration authorities
Practical tools for procurement officers
Awareness raising activities and training
12
13
Challenges of sustainable procurement
 Lack of political support
 Lack of legal expertise in applying criteria
 Lack of practical tools and information
 Lack of training
 Lack of cooperation between authorities
 Perception of financial burden
14
UNEP/Wuppertal Institute, Consumption and Production (CSCP), 2010
15
 United Nations
 OECD
 WTO/GPA
 EU Policy/Directives
 Others…
International Policy Framework
16
17
 Helsinki awarded contract for operation of urban
bus route to HKL challenged by Concordia:
 level of nitrogen oxide emissions and noise level of
buses
 ECJ allowed ecological award criteria:
are linked to the subject matter of contract,
do not confer unrestricted freedom of choice,
specified in tender notice or documents,
comply with EU law principles,
 ECJ: No discrimination even though criteria limit
number of tenderers
ECJ, C-513/99, Concordia Bus
18
•
‘Europe 2020 Strategy’
“Europe 2020 Strategy” for:
 smart,
 sustainable
 inclusive growth
was adopted in 2010 by the European Council
 The main goal of the Strategy is to help recovery from the
crisis by boosting competitiveness, productivity, social
cohesion and economic convergence.
 It is explicitly acknowledged that these challenges must be
addressed in a sustainable manner.
19
National Action Plan or equivalent document
adopted
22: Austria, Belgium, Bulgaria, Cyprus, Czech
Republic, Denmark, Finland, France, Germany,
Ireland, Italy, Latvia, Lithuania, Malta, Netherlands,
Poland, Portugal, Slovakia, Slovenia, Spain,
Sweden, UK
No existing NAP
6: Croatia, Estonia, Greece, Hungary, Luxembourg,
Romania
National Action Plans (NAPs) – in Member
States/May 2014
20
 Public procurement is becoming a policy strategy
instrument.
The key points:
1. Environmental and social record
2. Sustainable production practices
3. Use of eco-labels
4. Lowest price award and life-cycle costing
The new directive gives greater prominence to LCC as a
means of calculating costs, including environmental
externalities such as greenhouse gas emissions and climate
change mitigation costs.
New EU Directive (2014/24/EU)
21
Eco labels
22
1. Copying and graphic paper
2. Cleaning products and services
3. Office IT equipment
4. Construction
5. Transport
6. Furniture
7. Electricity
8. Food and Catering services
9. Textiles
10. Gardening products and services
11. Windows
12. Thermal insulation
13. Hard floor-coverings
14. Wall Panels
15. Combine Heat and Power (CHP)
16. Road construction and traffic signs
17. Street lighting and traffic signals
18. Mobile phones
19. Indoor lighting
EU priority sectors for implementing GPP
23
As an example of weak policy implementation:
Turkey case
 Current Turkish PPL has not cover detailed/direct green or
social provision.
 Environmental Impact Assessment (EIA) Report,
 2% of public employees have to be disabled,
 Political/administrative support and commitment
 More compatible law is necessary
24
 SP: a cost-efficient policy tool in practice?
 SP is still relatively new (emerging in the mid 1990’s)
 SP can contribute for the delivery of a wide range of
government policy objectives.
 SP is a voluntary instrument principally
 SP policy results are borderless.
 SP is the way of future.
Conclusion
25
Purchasing the future!
“Treat the earth well: We do not inherit it from our
ancestors, we borrow it from our children.”
Native American Proverb
26
THANKS FOR YOUR
LISTENING!
Abdullah KORKMAZ
Legal Advisor, Ministry of Interior
Ankara-TURKEY
Tel : (Mobile):+90 505 4668501
E-mail: akorkmaz68@hotmail.com
27

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Sustainable Procurement as a Policy Tool

  • 1. SUSTAINABLE PROCUREMENT: STRONG ENOUGH AS A POLICY TOOL? Abdullah KORKMAZ Legal Advisor, Ministry of Interior TURKEY Dublin, 15.08.2014 1
  • 2. What is sustainability?  Key components of sustainability: Social, economic and environmental. The integration of sustainability criteria into public procurement is an opportunity to further sustainable development. 2
  • 3. SP is the process of acquiring goods, services, and works that: Meet users’ needs Deliver long term value for money Maximise social and economic benefits Minimise damage to the environment and health What is sustainable procurement? 3
  • 8. 8
  • 9.  Needs assessment  Technical specifications  Selection stage  Award stage  Effective contract management  Monitoring and evaluation Sustainability in the procurement process 9
  • 11.  Waste reduction  Innovation/ “pre-commercial procurement”  Supporting local economy  Fair trade  Promotion of skills and training  Reducing cost  Race and gender equality  More social considerations… Achieving wider policy objectives 11
  • 12. Strategic steps Adopt a sustainable procurement policy Leadership and commitment from senior managers/policy-makers Mandatory SPP requirements Dialogue with suppliers Check for sustainability throughout procurement cycle «Joint procurement» by public administration authorities Practical tools for procurement officers Awareness raising activities and training 12
  • 13. 13
  • 14. Challenges of sustainable procurement  Lack of political support  Lack of legal expertise in applying criteria  Lack of practical tools and information  Lack of training  Lack of cooperation between authorities  Perception of financial burden 14
  • 15. UNEP/Wuppertal Institute, Consumption and Production (CSCP), 2010 15
  • 16.  United Nations  OECD  WTO/GPA  EU Policy/Directives  Others… International Policy Framework 16
  • 17. 17
  • 18.  Helsinki awarded contract for operation of urban bus route to HKL challenged by Concordia:  level of nitrogen oxide emissions and noise level of buses  ECJ allowed ecological award criteria: are linked to the subject matter of contract, do not confer unrestricted freedom of choice, specified in tender notice or documents, comply with EU law principles,  ECJ: No discrimination even though criteria limit number of tenderers ECJ, C-513/99, Concordia Bus 18
  • 19. • ‘Europe 2020 Strategy’ “Europe 2020 Strategy” for:  smart,  sustainable  inclusive growth was adopted in 2010 by the European Council  The main goal of the Strategy is to help recovery from the crisis by boosting competitiveness, productivity, social cohesion and economic convergence.  It is explicitly acknowledged that these challenges must be addressed in a sustainable manner. 19
  • 20. National Action Plan or equivalent document adopted 22: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Latvia, Lithuania, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, UK No existing NAP 6: Croatia, Estonia, Greece, Hungary, Luxembourg, Romania National Action Plans (NAPs) – in Member States/May 2014 20
  • 21.  Public procurement is becoming a policy strategy instrument. The key points: 1. Environmental and social record 2. Sustainable production practices 3. Use of eco-labels 4. Lowest price award and life-cycle costing The new directive gives greater prominence to LCC as a means of calculating costs, including environmental externalities such as greenhouse gas emissions and climate change mitigation costs. New EU Directive (2014/24/EU) 21
  • 23. 1. Copying and graphic paper 2. Cleaning products and services 3. Office IT equipment 4. Construction 5. Transport 6. Furniture 7. Electricity 8. Food and Catering services 9. Textiles 10. Gardening products and services 11. Windows 12. Thermal insulation 13. Hard floor-coverings 14. Wall Panels 15. Combine Heat and Power (CHP) 16. Road construction and traffic signs 17. Street lighting and traffic signals 18. Mobile phones 19. Indoor lighting EU priority sectors for implementing GPP 23
  • 24. As an example of weak policy implementation: Turkey case  Current Turkish PPL has not cover detailed/direct green or social provision.  Environmental Impact Assessment (EIA) Report,  2% of public employees have to be disabled,  Political/administrative support and commitment  More compatible law is necessary 24
  • 25.  SP: a cost-efficient policy tool in practice?  SP is still relatively new (emerging in the mid 1990’s)  SP can contribute for the delivery of a wide range of government policy objectives.  SP is a voluntary instrument principally  SP policy results are borderless.  SP is the way of future. Conclusion 25
  • 26. Purchasing the future! “Treat the earth well: We do not inherit it from our ancestors, we borrow it from our children.” Native American Proverb 26
  • 27. THANKS FOR YOUR LISTENING! Abdullah KORKMAZ Legal Advisor, Ministry of Interior Ankara-TURKEY Tel : (Mobile):+90 505 4668501 E-mail: akorkmaz68@hotmail.com 27