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

1. Thematic Seminar 5-Achieving Energy Efficiency through Sustainable Public Procurement (SPP) Natalie Evans, SPP Project Officer ICLEI – Local Governments for Sustainability natalie.evans@iclei.org +49-761/368 92-48

2. 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/

3. ICLEI and Sustainable Public Procurement (SPP) 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

4. 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.

5. Structure • Introduction • Session 1 – Transport and mobility • Session 2 – Construction and maintenance • Session 3 - Electricity and CHP • Summary and context

6. IntroductoryPresentation • Sustainable Public Procurement (SPP) Definition • Legislation • Power of SPP • Implementing SPP – The basics • Procurement methods to promote SPP • Relationship between SPPs and SEAPs

7. Definition Sustainable Public Procurement is often described as being comprised of three main elements, fundamental to sustainable development. Sometimes referred to as the “triple bottom line”

8. 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

9. 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

10. 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

11. The Procura+ milestone approach

12. 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

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

14. SPP in Scope 1, 2 and 3

15. Session 1: Mobility & Transport • Sector specific legislation • How economically and environmentally sustainable procurement can achieve energy efficiency • Related projects, guidance and assistance

16. 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.

17. 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

18. Using SPP to achieve energy efficiency • Demand Management • Holistic thinking • Defining need - • Market dialogue • Joint Procurement • Research • Internal need • Market availability

19. 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 

20. 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

21. Session 2: Construction & Maintenance • Sector specific legislation • How sustainable and innovative procurement can achieve energy efficiency • Related projects, guidance and assistance

22. 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

23. 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!

24. 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

25. 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

26. Session 3: Electricity and CHP • Sector specific legislation • How green public procurement can achieve energy efficiency • Related projects, guidance and assistance

27. 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

28. 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

29. 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.

30. 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

31. Final discussion points • In general, which SEAP energy sectors would benefit most from an increased focus on SPP? • To what extent have/will you integrate SPP considerations into your own SEAP? • Do you have examples of good practice SPP related to energy efficiency and/or reduction of energy use from your own/ other administrations?

32. 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!

33. 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!

34. 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

35. Procura+ Chair and Vice Chair Chair Pekka Sauri, Deputy Mayor, City of Helsinki Vice Chair Mercè Rius i Serra, Deputy President for Environment, Province of Barcelona Vice Chair Lari Pitkä-Kangas, Municipal Commissioner for Urban Ecology and Sustainable Development, City of Malmö

36. The Procura+ Manual English, French, Italian, German, Greek & Catalan Available free as a hard copy and pdf www.procuraplus.org

37. Procura+ participants • 35 participants • 14 Countries • Largest: 7,000,000 • Smallest: 10,000

38. 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/

39. 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

40. Exchange • Procura+ Exchange 700 subscribers from 40 countries • English, German and French • Annual Procura+ seminars • EcoProcura conference series (www.ecoprocura.eu)

41. 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

42. Thank you Natalie Evans natalie.evans@iclei.org www.procuraplus.org www.sustainable-procurement.org