SPP as a way to leverage more demand for sustainable goods and services: A focus on Switzerland

1. International Affairs DivisionEconomics and Environmental Monitoring Division SPP as a way to leverage more demand for sustainable goods and services: A focus on Switzerland 5 September 2013

2. Outlook • Introduction to SPP – Definition of SPP • The three elements of SPP • Whole life basis approach • Ways of commitment to SPP • SPP at the global level • SPP in Switzerland

3. Introduction to SPP – why SPP? • Public spending normally represents between 8 and 30% of national GDP (Switzerland: 40 Billion CHF / year) • Governments can lead by example by creating demand and markets for more sustainable products • Government can spend tax payers money in a responsible way

4. Introduction to SPP – Definition of SPP Sustainable Public Procurement (SPP) is … “… a process whereby organizations meet their needs for goods, services, works and utilities in a way that achieves “value for money on a whole life basis” in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment. .” Defra, UK Sustainable Procurement Task Force (2006) Definition taken over by the Marrakech Task Force on SPP … good procurement, where transparency, fairness, non-discrimination, competition, accountability are essential elements.

5. The three elements of SPP • Environmental dimension... Green, ecological, environmentally friendly, environmentally responsible procurement... • Social dimension... Socially responsible, inclusive, ethical procurement… • Economic dimension... Efficient, competitive, innovative procurement… SPP

6. Whole life basis Approach Procure goods, services and construction works meeting a high standard of social, economic and environmental demands throughout their entire lifetime (SD strategy Switzerland) Raw material Production Use End of use

7. Best value for money Lowest price at time of purchase ≠ Best value for money More benefits achieved, better investment of expenditure =

8. Procurement Process Procurement Strategy Identify Need Technical Specification Award Criteria Mandatory participation conditions Selection Criteria Contract conditions Best value for money - Economically most advantageous bid

9. Actual trend • Many countries committed to sustainable or green public procurement (in more or less depth) • Growing trend • Most with specific green procurement policies and some with more obligatory sectoral policies • Social dimension regaining momentum

10. Ways of commitment to SPP • Differentways and different levels of detail: • Maximum level = National Constitution • Global strategies on sustainable development • Environmental protection policies and strategies • Specific SPP plans of action • Sectoral policies with SPP obligations Legitimizing actions Complementary systems that reinforce commitment Informing the market

11. SPP at a global level

12. International Sustainable Public procurement Initiative SPPI launched by UNEP

13. Trends in Asia • GPP/SPP (especially green) is making progress • Model case in Japan • Followed by Taiwan and Korea • Progress in other countries such as China and the Philippines

14. Examples of Latin America

15. Constitution of Ecuador Art. 288.- • Public procurement must comply with criteria of efficiency, transparency, quality, environmental and social responsibility. • Priority shall be given to national products and services, particularly those from popular and solidarity economy, and micro, small and medium production units.

16. Environmental Action Plan of Peru • The National Plan for Environmental Action 2012-2021 has as strategy of the National Environmental Policy: • "To incorporate environmental criteria in the regulatory framework of the State's economic activities, in order to reduce the negative environmental impact in such activities: the Multiannual Macroeconomic Framework, the National Public Procurement System, the National System of Public Investment, Proinversión, the General Accounts of the Republic and the National Control System".

17. National Development Plan of Colombia • The National Development Plan 2010-2014 establishes to: • Promote the relationship of local production with public and institutional procurement processes [...] and direct public procurement processes. • Promote green state procurement in the national and regional spheres. Objective: 10% (in expenditure) of all State procurement to be green

18. SPP Policies in the European Union • Great number of action plans in almost all Member States of the European Union • Most in green public procurement • The social dimension is gaining ground • They include: • Objectives by groups of products and services • Development of criteria or use of the EC standards • Training activities • To a lesser extent: market analysis, communication and monitoring actions

19. SPP in Switzerland

20. Framework conditions for SPP • Inclusion of Sustainable Development in the Federal Constitution (FC), article 2, “Aims” and article 73 “Sustainable Development” • Sustainable Development (SD) Strategy 2012-2015 of the Federal Council • Federal Act and Ordinance on Public Procurement • Ordinance on the Organisation of Public Procurement (Monitoring SPP) • „Sustainable Procurement“ - Recommendations for the federal procurement offices • MasterplanCleantech of the Federal Council as part of the Green Economy Strategy • Training for procurers and suppliers

21. Thank you for your attention! eveline.venanzoni@bafu.admin.ch