Zero emission deliveries through smart procurement This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 724101 Zero emission deliveries through smart procurement PROCUREMENT OF INNOVATIVE SOLUTIONS FOR ZERO EMISSION URBAN DELIVERY OF GOODS AND SERVICES Giacomo Lozzi, Polis Network 20 September 2018 | CIVITAS Forum 2018 Umea, Sweden BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

Freight and logistics

Goods distribution, shopping, service trips Product (instant) deliveries Waste collection Individual trips to/from shops Cleaning & maintenance service trips BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

BuyZET project Procurement of innovative solutions for zero emission urban delivery of goods and services 10 cities involved Core cities: Rotterdam, Oslo, Copenhagen Observer (partner) cities: Southampton, Brussels, Bologna, Jerusalem, Bielefeld, Manchester and Munich Timeline: Nov 2016 – Apr 2019 Website: www.buyzet.eu In CIVITAS BuyZET, three cities (Copenhagen, Rotterdam and Oslo) are testing new smart procurement approaches to influence the transportation footprint of purchased services, goods and vehicles.

Why procurement? Rules to procure external services and goods according to ‘green’ standards: Signals to UFT stakeholders to improve their sustainability standards in order to participate in public tenders Example of good practice, triggering a virtuous circle for behaviour change (‘practice what you preach principle’). Advantages: Soft measure (incentives, demand management) Relatively low-cost Powerful leverage, public-driven Public procurement for freight and Eco-labels are also an effective and relatively low-cost solution and, in some respects, they follow the same principles as the UFT demand management category: the use of the procurement leverage and recognition schemes (including eco-labelling) potentially enhance safety and reduce emissions. Indeed, public administrations might set rules to procure external services according to certain “green” standards: in this way, they i) give signals to UFT stakeholders to improve their sustainability standards in order to participate in public tenders, and ii) give an example of good practice, triggering a virtuous circle that allows them to frame these choices in the framework of behaviour change campaigns (‘practice what you preach principle’). BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

Transport and procurement Almost all procured contracts involve transportation

Procurement categories 2. Purchased transport services 3. Other goods and services 1. Own fleet Garbage trucks Office car fleet Maintenance staff … Bus services Social transportation School transport … Construction Road maintenance Office supplies Cleaning services School catering … BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

BuyZET – Activities Phase 1: Identify goods and service procurement areas with highest ‘transportation footprint’ (Footprint mapping). Select two procurement areas to focus on Phase 2: Carry out extensive market consultation and research for each procurement area Develop buyers groups if possible Prepare innovative procurement plans for each area Step 1 – Identifying the transportation footprint of our procurement Each city has studied the transportation impacts of different types of procurement activities following different methodologies being developed within the project. These activities are divided into three categories, differing according to the transport ownership and type of service provided. Each city has then identified identify two priority procurement areas to focus on for the project. Step 2 – Developing innovative procurement plans For each procurement priority area, the cities will explore potential innovative procurement solutions by: Establishing a constant dialogue with all relevant market actors in the supply chains of the selected procurement areas Engaging with other cities Exploring best practice from across Europe Forming Buyers Groups to launch joint or collaborative procurement actions   At the end of this process Innovative Procurement Plans will be developed for each procurement area, to be implemented by the cities in the coming years.

Activities path Mapping Prioritising Selected areas Planning Mapping The procurement transportation and emission mapping reports aim to identify and include all activities performed by cities that involve transportation. Each city within the BuyZET project – Copenhagen, Oslo and Rotterdam – has studied the transportation impacts of different types of procurement activities following different methodologies developed within the project. Prioritizing Copenhagen, Oslo and Rotterdam explore potential pathways to zero emission delivery for the shortlisted areas identified in the mapping report, through discussion with internal stakeholders, and dialogue with other European cities and projects. The cities identified several priority areas, which they considered the most relevant, according to various criteria, including CO2 emissions, local political focus, feasibility and replicability.   Selected priority areas BuyZET partners defined four priority areas, and for each one of the core cities is acting as the lead – i.e. a focal point for collecting relevant information, good practice etc. These groups are: Maintenance and repair service contracts (all cities, Rotterdam leader) Waste collection trucks (Oslo) Supply logistics (multiple goods) (Copenhagen – leader, Rotterdam) Construction materials (Rotterdam) Planning The core project’s cities, Copenhagen, Oslo and Rotterdam aim to develop new procurement plans for the priority sectors aimed at delivering zero emission deliveries and services. BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

PHASE 1 Footprint mapping BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

Footprint mapping - results Oslo 10% 10% 6% 74%

Footprint mapping - results % CO2 emissions per category Category CPH OSLO RDAM 1. Own fleet 6% 10% 23% 2. Purchased transport services 79% 84% 68% 3. Other goods and services 15% 9%

Criteria for procurement areas selection Meaningful: the emission reduction realised has to be significant. Doable: it has to be possible to realise the changes. Visible: the achieved results have to be clear and demonstrable to people within and outside the organisation. Potential for snowball impact on the wider impact Replicability within the organisation

Overview of Priority Areas for all Cities

PHASE 2 Market consultation and research for each procurement area BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

Which solutions has Copenhagen discussed for each priority area? Exploring potential pathways to zero emission delivery: Consolidation of deliveries from several suppliers Set up and use of a consolidation platform Consolidation of orders placed Exploring how to pool orders within one of the big procurement areas (e.g. ICT equipment) Repair and maintenance service Use of cargo bikes Use of environmental criteria Use of electric bikes BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

Which solutions has Oslo discussed for each priority area? Exploring potential pathways to zero emission delivery: Repair and Maintenance Service Use of strict environmental criteria in tenders Innovation partnership Storage areas for suppliers Promoting suppliers with short travel distance Designated EVs chargers in delivery locations Assistance to suppliers in applying for financial funding Industrial Waste collection Decrease waste and enable circular procurement New citywide framework agreement BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

Which solutions has Rotterdam discussed for each priority area? Exploring potential pathways to zero emission delivery: Construction material Use of low emission vehicles Set up of a consolidation hub Transport by ship Repair and maintenance service Using a green fleet certification system (EcoStars) for their current maintenance contracts Extension of the contracts dependent on the contractor showing sufficient progress BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

From theory to practice: stakeholder engagement Cooperation inside the municipality Get a complete overview over current service contracts for all agencies in the municipality Dialogue with cities that already have implemented these measures Market dialogue and engagement with logistics operators ans suppliers: on the existing and potential contracts on a shift to delivery at a hub instead of directly to working locations BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

Discussion Any experience on (smart) procurement for transport? Mapping results: Have you ever done something similar? Similarities/differences wrt BuyZET cities? Priority areas (Building and facility maintenance and repair services, Consolidation of deliveries, Industrial waste collection, Construction material transportation): Relevant for you? Best practices to share?

Get involved Sign up to our Interest Group: Access to project meetings and study visits Participation in regular city update and thematic webinars Further updates on project activities Opportunity to join buyers groups Identify and engage with other public/private buyers = collaborative procurement actions

Contact us Reach us: For more information: Partners: Visit the project website: www.buyzet.eu Join the discussion at the BuyZET Procurement Forum Group: https://procurement-forum.eu/ Follow BuyZET on Twitter: @BuyZETproject Join the BuyZET LinkedIn Group: BuyZET Project Giacomo Lozzi Urban Freight Coordinator, Polis Network Phone: + 32 2 5005686 Email: glozzi@polisnetwork.eu Simon Clement BuyZET Co-ordinator, ICLEI – Local Governments for Sustainability Phone: +49-761 / 3 68 92-0 Email: simon.clement@iclei.org Partners: BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services