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Green Public Procurement in Korea

Green Public Procurement in Korea. Dec 17, 2013. C ontents. I. Korean Green Purchasing Policy II. GPP Promotion Activities III. Future Plans. I. Green Purchasing Policies. 4. Green Purchasing Policies. Act to Promote the Purchase of Eco-friendly Products (2005).

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Green Public Procurement in Korea

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  1. Green Public Procurement in Korea Dec 17, 2013

  2. Contents I. Korean Green Purchasing Policy II. GPP Promotion Activities III. Future Plans

  3. I. Green Purchasing Policies

  4. 4 Green Purchasing Policies Act to Promote the Purchase of Eco-friendly Products (2005) • Since 2005, public institutions have purchased eco-products • - Direct purchasing of eco-products • - Eco-services : printing, cleaning service, building maintenance • - Indirect purchasing : discretionary order on cleaning, building repairs • Target Organizations : 864 government and public institutions • (Total28,700 institutions including affiliated organizations) • Scope of Eco-Products : Eco-Label Products, Good Recycled mark products, Other eco-products satisfying criteria established by the MOE

  5. 5 Green Purchasing Policies Green product development and relevant system improvement Nationwide green distribution network Support for production/distribution/purchasing of green products System for mandatory procurement implementation A platform for green procurement system Green product info system Green construction materials Action Plans to Promote Purchase of Green Products (2011~2015) Green product manufacturing /distribution 20%→30% Platform for public green procurement 65%→35% portion (before→after) Incentives for green consumption Local green consumption support centers Networks for green consumption promotion Correct information on green purchasing 10%→30% Nationwide green consumption 5% Global cooperation Global cooperation in ecolabeling Free trade for green products Environmental regulations

  6. 6 Green Purchasing Policies Action Plans to Promote Purchase of Green Products (2011~2015)

  7. 7 Green Purchasing Policies Green Product under Article 2 of the Framework Act on Low Carbon, Green Growth Green Product Ecolabeled products and products of equivalent value under Article 17 of 「Support for Environmental Technology and Industry Act」 GR products and products of equivalent value that are designated by the Minister of Knowledge Economy under Article 33 of 「Act on the Promotion of Saving and Recycling of Resources」 and Article 15 of「Act on the Promotion of Industrial Technology Innovation」 Items Eco-labeling GR Products Number of Certified Products Certification Authority Website

  8. 8 Green Purchasing Policies GPP System Records of each organization’s procurement Policy direction and supervision Guideline Policy suggestion Green product information Procurement records Records and plans Green product information and procurement support Procurement request

  9. 10 Green Purchasing Policies Government e-Procurement System • National Public Procurement Service operates the GePS • GePS provides detailed information on eco-products to the public organizations • GePS tracks the results of green procurement Special Shop for Eco-products Eco-Label product

  10. 11 Green Purchasing Policies Price: Green Product vs. Non-Green Product • Increase/Decrease rate(%) • Non-Green Product • Green Product • Price Gap • Item • Features • (A) • (A-B) • (A/B) • (B) • CPU, Memory, HDD, • Monitor Excluded • PC • 997,000 • 980,000 • 17,000 • 1.73 • CPU, Memory, • HDD, • ▲ • ▲ • Laptop • 1,426,400 • 1,430,000 • 3,600 • 0.25 • Definition, printing speed, gray scale • ▲ • ▲ • Copy Machine • 3,168,000 • 3,251,800 • 83,800 • 2.58 • Toner Cartridge • Printer model, printing volume • ▲ • ▲ • 24,750 • 36,000 • 11,250 • 31.25 • A4, Weight (g/m2), • 1box (2500 sheets) • ▲ • ▲ • 15,400 • 20,000 • 4,600 • 23.00 • Paper • B4, Weight (g/m2), • 1 box (2500 sheets) • 24,500 • 38,000 • 13,500 • 35.53 • ▲ • ▲ • Identical wood texture, • 1600×1200×720mm • Desk • 238,580 • 236,842 • 1,738 • 0.73 • Jumbo roll, 300m, • 16rolls • ▲ • ▲ • Toilet Paper • 33,800 • 34,400 • 600 • 1.74

  11. 13 Green Purchasing Policies Reports on Green Procurement • Establish procurement plan by the end of each January in accordance with the Guideline for Purchasing Eco-Friendly Products, and after its result is announced at the end of next year February • The data are registered in the consolidated information network of the government (www.greenproduct.go.kr) Top Level(HQ. Main Office) Approve/sum up/submit system submit In excel file Department Announce final result < Pertinent Institution for system submittal> - Federal Govt. Institution: Ministry - Autonomy: village, county & city office - Education Office: school - Others: each branch pertinent Institution pertinent Institution pertinent Institution pertinent Institution System registration system registration system registration system registration

  12. II. GPP Promotion Activities

  13. 14 GPP Promotion Activities Procurement records reflected in performance evaluation • State-run companies • Local state-run companies • Local Gov. 20% 100% 100% 80% • Share of Green Products • Effectiveness • Evaluator:Ministry of Public Administration and Security • Evaluator:Ministry of Public Administration and Security • Evaluator: Ministry of Strategy and Finance • Evaluation indicator: • Observance of government policy (score:5) • Evaluation indicator: • Observance of government policy (score:10) • Evaluation indicator: • General environmental management (score:14.5) • Share out of total score: • 6.1/900 • Share out of total score: • 0.3/100 • Share out of total score: • 1.5/100

  14. 15 GPP Promotion Activities Green Procurement Records via PPS Total amount GP amount GP ratio Organizations

  15. 16 GPP Promotion Activities Green Procurement Training Session • Regular and random training sessions are held for people in charge of procurement, auditing and construction at public institutions. • - 62,269people have attended the session during the period between 2005 and 2013. • - In conjunction with the Low Carbon Green Growth Expo, attendees get to see and use • green products after the training.

  16. 17 GPP Promotion Activities GPP Workshops & awards • Workshops are held for local governments and military personnel to showcase best practices in green procurement • - USD 5,000, USD 3,000 & overseas training are given • Awards to individuals, businesses, organizations that contribute to green procurement, development and dissemination of green products

  17. 18 GPP Promotion Activities Newsletter & Best Practice Collection • Interviews of people in charge of green procurement at public institutions are released every month (28,700interviews so far) • Institutions share their cases via best practice collections that have been issued since 2006

  18. 19 GPP Promotion Activities PPS Green Products Bidding Notice : construction materials Eco-labeled construction materials

  19. 21 GPP Promotion Activities Records of Green Procurement at Public Institutions • Over 6.8-fold growth from KRW 255 bn before the law to KRW 1,727 bn in 2012 • GPP accounts for 5 to 6.5 % over total purchases executed by PPS 1,727 1,645 Unit: billion KRW 1,641 1,630 1,584 Act to Promote the Purchase of Eco-friendly Products 1,344 861 787 255 2012 2004 2005 2006 2007 2008 2009 2010 2011

  20. 22 GPP Promotion Activities 공공기관 녹색제품 구매실적 • Since the enactment of the act, the number of manufacturers and certified products have been on a rapid rise • Sales of ecolabeled products have reached USD 26.8 billion • Relevant industries such as parts and materials are going green as well • Competition leads to better quality and price

  21. 23 GPP Promotion Activities Environmental/Economic Benefits from Green Procurement • For the last 8 years, public sector’s green procurement in 19 items resulted in 3.71 million tons of CO2 reduction and 14,335 new jobs • - As a result of public sector’s green procurement in 2012 • CO2Reduction= 491,000t,Economic Benefits= KRW 7.4 billion Job creation(capita) 620 601 544 491 538 Economic benefits (billion KRW) 495 CO2 equivalent emission reduction (thousand Tons) 316 4,001 9.4 8.2 9.1 7.4 8.1 7.5 6,532 1,995 4.8 677 114 108 379 619 96 1.6 36 2012 2011 2006 2007 2008 2009 2010 2005

  22. III. Future Plan

  23. 24 Future Plans • After a few years of rapid growth, Korean public sector’s green • procurement has reached a stable stage • Approx. USD 1.63 bn(‘10) ⇒ USD 1.64 bn (‘11) ⇒ USD 1.72 bn (‘12) • Future Plans • Expand the products groups covered by GPP among the items that are in high demand at public institutions • Ensure public institutions use green construction materials when building new facilities or green building certification program • Strengthen green procurement policies in the private sector and encourage green consumption among ordinary consumers • Expand partnerships with UNEP : green purchasing Training programs

  24. Thank You! Mr. Moon, Sung-Sik ecomark@hanmail.net

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