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TRANSCRIPT
Galit Palzur
Director of the Economics and Standards Division
WTO National Seminar on the Agreement on Government
Procurement
21-22 May 2013
Jerusalem
Green Public Procurement
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Table of Contents
Greening the Economy
The Purpose of Green Public Procurement (GPP)
Legal Framework
Practical Dilemmas Arising from GPP and their Solutions
Framework for Implementation (“Product Papers”)
Examples for Green Criteria Integrated into Tenders
Examples for Economic Cost-Benefit Analyses
Lessons and Future Work
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Greening the Economy
Greening the Economy includes all human activity, especially reduce resource use and the generation of waste and pollution:
Greener production processes
Greener transportation of products and services
Greener consumption
Greener financial markets
Proliferation of environmental technologies
Promote R&D
Academia and human resources
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The Purpose of Green Public Procurement
The Purpose of Green Public Procurement (GPP)
The government as an example for others
The Government as a big consumer:
Higher demand pushes production / import costs down
Creating markets for new products in the Israeli market
Inducing environmental technology innovation
Cutting costs in the long-run
Reducing the use of materials and natural resources, and the creation of wastes and pollution
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Legal Framework
The Mandatory Tender Law and its regulations are the basis.
A change to Regulation no. 24 added in 2009 allows the Accountant General to introduce directives regarding the promotion of government purchases of goods and services which hold an environment standard.
An environmental standard for this purpose is either an Israeli official standard or either another international standards approved by the Ministry of Environmental Protection.
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Practical Dilemmas Arising from GPP and Solutions
Practical Dilemmas Arising from GPP at the Government Procurement Administration (GPA):
Green criteria reduce the number of suppliers that can meet the requirements
Few suppliers / a single supplier raises costs (no competition)
Solutions for the Dilemmas Arising from GPP:
Signaling future changes in advance
Gradually introducing green criteria (% of purchase / % of criteria)
Use Cost-benefit analyses before introduction
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Framework for Implementation
Framework for Implementation (“Product Papers”):
Product Papers include the green criteria for each product
The green criteria, according to the international experience include:
Criteria for the production and disposal stages
Criteria for the transportation of the product
Technical criteria
Criteria from the producer
List of possible suppliers (to verify competition)
Cost-benefit analysis
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GPA Tenders Incorporating Green Criteria
Existing tenders:
Recycled / Ecological Paper
Government cars
Tenders to be published in 2013:
Printers
PCs
Computer monitors
Furniture
Video conference services
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Examples of Green Criteria Integrated into Tenders
Green Criteria Integrated in the Tender for Recycled / Ecological Office Paper
Recycling criterion: at least 30% of the paper comes from post-consumer waste (PCW).
Sustainable Forestry: at least 50% of the non-recycled cellulose pulp comes from sustainable forestry.
Other minimum requirements: no use of chlorine for bleaching and the producer must have an environmental management system.
100% 90% 80% 70% 60% 50% 40% 30% 20% 10%
100% 90% 80% 70% 60% 50% 40% 30% 20% 10%
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Examples of Green Criteria Integrated into Tenders
Proposed Green Criteria for Televisions according to International Experience:
Energy efficiency in two modes of use: Use mode and standby mode
The product has a minimum amount of hazardous materials for health and environment
Producer Responsibility
Use of recycled packaging / packaging which can be recycled
The Producer has an environmental management system
The product includes guidelines for consumers on how to save energy
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Examples of Economic Cost-Benefit Analyses
Toner Cartridges for Printers:
Environmental External Costs for Each Type of Toner
Total External Costs (NIS) Alternative Toner Type
Recycling Renewing Scrapping
0.11 - 0.2 Original Equipment Manufacturer
- - 0.2 High Standard Substitutive
- - 0.84 Low Standard Substitutive
- 0.057 - High Standard Renewed
- 0.619 - Low Standard Renewed
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Examples of Economic Cost-Benefit Analyses
Toner Cartridges for Printers
Life Cycle Costs for Consumers (inc. paper costs, NIS)
Low standard renewed
High Standard Renewed
Low standard
substitutive
High standard
substitutive
Original Equipment
Manufacturer
Toner Model
297 297 297 277 461 Xerox 109R00747
267 333 267 303 520 HP-C4096A
402 404 402 435 460 HP-C9700A
318 456 318 312 626 Xerox 106R01374
321 372 321 332 517 Average Price
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Examples of Economic Cost-Benefit Analyses
LED Traffic Signals*
* Analysis conducted by the City of Yakima, State of Washington, for 2001-2002
http://www.yakimawa.gov/services/streets/led-traffic-signals/
Light Emitting Diodes (LED)
(US$)
Incandescent Halogen Bulbs
(US$)
1) 3$*10 2) 85$*1
85 30 Initial Costs
50 500 Maintenance Costs
1) 54$/year 2) 9$/year
90 540 Electricity Costs
~80% reduction in costs
225 1,070
Total costs for 10 years
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Examples of Economic Cost-Benefit Analyses
LED Traffic Signals – Environmental Benefits
Total Costs
Light Emitting Diodes (LED)
Incandescent Halogen Bulbs
1,825 8,760 KWh / 10 years
0.044$ (based on the Israeli figure of 0.165 NIS)
External Cost of Air Pollution from 1 KWh
80$ 385$ External Cost of Air Pollution for 10 years
Light Emitting Diodes (LED)
Incandescent Halogen Bulbs
305$ 1,455$
Using LEDs would save 1,150$ per bulb / 10 years
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Lessons and Future Work
Not enough awareness of the benefits of GPP
Economic evaluations are needed to see whether / which green criteria are worthwhile
The adoption of international green standards will facilitate the diffusion of greener products and services
Future work will focus on extending cost-benefit analyses for more products and services and continuing the ongoing cooperation with the Israeli GPA.
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Thank You
For Your Attention
Contact Info.: Galit Palzur
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