Thematic Seminar 5 - Achieving Energy Efficiency through Sustainable Public Procurement (SPP) Natalie Evans, SPP Project Officer ICLEI – Local Governments for Sustainability /

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 -

Mandate to work on SPP Set European SP Exchange network st European sustainable procurement conference Launched European SP Initiative Developed the EC GPP Toolkit Member of the EC Launched the Procurement Forum Developed EC GPP Handbook Launched SP Resource Centre Member of the EC’s Public Procurement Stakeholder Group and GPP Advisory group ICLEI and Sustainable Public Procurement (SPP)

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.

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

Introductory Presentation Sustainable Public Procurement (SPP) Definition Legislation Power of SPP Implementing SPP – The basics Procurement methods to promote SPP Relationship between SPPs and SEAPs

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”

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

What can SPP achieve? Major reductions in energy use and CO 2 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

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

The Procura + milestone approach

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

National Action Plans & Support CountryAction Plan BulgariaIn progress (Ministry of Economy and Energy, Ministry of Environment and Water, Council of Ministers and Public Procurement Agency) GermanyAdopted and legally binding for timber and LCC IrelandAdopted LithuaniaAdopted SloveniaAdopted UKAdopted See for full details on each Member state’s national action planhttp://ec.europa.eu/environment/gpp/action_plan_en.htm

SPP in Scope 1, 2 and 3

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

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.

Clean Vehicles Directive 3 methodologies: Technical Specifications Award Criteria Life Cycle Costing (LCC) monetising different pollutants (including CO2, PM, NOx, NMHC) “Clean Fleets” project [ ] Training Workshops, thematic groups Direct tender assistance

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

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

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

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

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

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!

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

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

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

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

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

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.

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

Final discussion points 1) In general, which SEAP energy sectors would benefit most from an increased focus on SPP? 2) To what extent have/will you integrate SPP considerations into your own SEAP? 3) Do you have examples of good practice SPP related to energy efficiency and/or reduction of energy use from your own/ other administrations?

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!

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!

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

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

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

Procura + participants n 35 participants n 14 Countries n Largest: 7,000,000 n Smallest: 10,000

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:

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

n Procura+ Exchange 700 subscribers from 40 countries n English, German and French n Annual Procura + seminars n EcoProcura conference series ( Exchange

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

Thank you Natalie Evans