The use of the European Eco-label in Green Public Procurement approaches European Commission – DG Environment With the support of GPP expert from BIO Intelligence Service September 2005

Why is it worth doing green public procurement (GPP)? EU Eco-label and GPP Why is it worth doing green public procurement (GPP)? Why is it easy to do it with the EU Eco-label? Practically, how can a purchaser use the EU Eco-label in a call for tender? Success stories Content of the presentation

Evolution of the production of household waste in France (kg/inhab/yr) Introduction: increase of environmental damage and influence of products Our production, purchasing and consumption modes lead to an increase in environmental damage. Two examples: Hot water, domestic electricity (excl. space heating) Household heating Evolution of the production of household waste in France (kg/inhab/yr) Climate change, loss of biodiversity, energy crisis, decrease of non-renewable resources… it is proven that our environment is being damaged. These damages are linked to our production and consumption modes. 2 representative examples: The doubling of the quantity of household waste produced per inhabitant during the last 30 years in France reflects the evolution of our consumption modes: increase in the quantity of objects possessed and single-unit packaging, decrease of the lifetime of products, development of one-way products (wet wipes…). During this same period, the improvements realised by producers in terms of packaging reduction did not enable to the global increase of household waste production. Greenhouse effect : Greenhouse effect is the term relative to climate change. It is created by the so-called greenhouse gas emissions. Considering the CO2 emissions generated by all the activities on the French territory divided by the population, it appears that 52% correspond to the raw material extraction, manufacturing, use and disposal of all goods and services. Transport of persons PRODUCTS: production of goods and services at disposal Repartition of greenhouse gases emissions in France from different economic sectors Source : ADEME 2003 Source : ADEME 2003

What is Green Public Procurement ? Basing all purchasing decisions and allocation of contracts on environmental criteria along with other criteria such as price and quality "Green" public procurement is implemented by public purchasers who take into account environmental elements when buying products, services or works. Examples : energy efficient computers, energy efficient buildings, office equipment made of environmentally sustainable timber, recyclable paper, electric cars, environmental friendly public transport, organic food in school canteens, electricity stemming from renewable energy sources, air conditioning systems complying with state of the art environmental solutions... 

What is the importance and the role of public procurement ? Public procurement represents 16% of EU’s GDP – over 1 000 billion Euro Public procurement plays an important role in the development of the market of products with reduced environmental impacts Public authorities have to set the example in this field Publicly purchased items come from every sector of the economy “From pencils to power stations” So much money is spent by public authorities across the EU in public procurement (16 % of EU wide GDP or a sum equivalent to half the GDP of Germany) that it makes sense to use that money to help achieve environmental goals. In some product and service groups the impact could be greater still, as public purchasers are particularly significant in the market (computers, energy efficient buildings, public transport...). "Green" purchasing is also about setting the example and influencing the market place. In establishing a green procurement policy, and communicating the actions taken and the results of that action, the authority demonstrates that action in this area is possible, and that it leads to concrete results. Further, by promoting "green" procurement, public authorities may give important incentives to industry to develop "green" technologies.

How do Public Procurement Directives allow to take environmental considerations into account in call for tenders ? In March 2004, the Council and the European Parliament adopted new public procurement directives clarifying how environmental considerations could be integrated in the call for tenders. Public purchasers can take into account these environmental elements when buying products, services or works. Generally speaking, environmental considerations can be placed at the following stages of a call for tenders procedure: Definition of the subject of the contract Technical specifications Selection of the candidates Award of the contract Execution of the contract (more information on http://europa.eu.int/comm/environment/green_purchasing/html/general/overview_en.cfm) On 31 March 2004, the Council and the European Parliament have adopted the new public procurement directives (repealing the existing directives with effect from the date of implementation). Relevant provisions in relation to "green" public procurement: The definition of technical specifications, which includes environmental performance standards and production methods. This enables contracting authorities to ask for products with an environmental friendly production methods or to award extra points for products manufactured as such. The possibility to define technical specifications in terms of performance or functional requirements, including environmental characteristics. Environmental characteristics in terms of performance or functional requirements may be defined in tender documents by using the specifications as defined by European or (multi) national eco labels (under certain conditions regarding scientific basis, accessibility and stakeholder consultation). Member States may oblige contracting authorities to make sure that candidates or tenderers are informed of obligations relating to environmental protection. Possible exclusion of candidates who have been the subject of a definitive judgement or a decision having equivalent effect for non-compliance with environmental legislation, on the condition that it constitutes an offence concerning the professional conduct or grave misconduct under national law. Possibility for contracting authorities to ask for environmental management measures as a means to prove a tenderers' capacity to execute a specific works or service contract (for example in a works contract to build a bridge in a nature reserve, implying the need of continuous environmental management, and adoption of specific protection measures during the works). Explicit preference for EMAS (and equivalent means of proof) when asking for environmental management measures, as a way to certify the measures put in place. Environmental characteristics listed as a possible award criterion: it follows from the wording of the relevant provision that environmental criteria may be of qualitative or economical nature, and it doesn't have to bring a direct advantage to the contracting authority itself. Award criteria should always be linked to the object of the contract (which excludes criteria related to the operation of environmental management schemes because such schemes cover a wide variety of measures, most of which won't be related to the object of the contract). All technical specifications (including environmental performance standards, environmental production methods..) can be translated into award criteria. Environmental considerations can be included in the conditions relating to the performance of a contract (for example a requirement to deliver the products in bulk), if not discriminatory and no disguised technical specifications or selection criteria. More on http://europa.eu.int/comm/environment/gpp/legal.htm

Added value: usage cost generally lower than average The easiest way to do Green Public Procurement: use the European Eco-label The EU Eco-label is an official label managed by the European Commission which certifies that a product or service is of good environmental quality and guaranteed technical performance An eco-labelled product generates less environmental impacts on air, water, soil and human health Throughout its life cycle, from raw material extraction to end of life (“from cradle to grave”) Added value: usage cost generally lower than average The Flower scheme is part of a broader strategy aimed at promoting sustainable production and consumption. This aim can be achieved in the context of a "framework for an integrated life-cycle oriented product policy", as indicated in the new Environmental Action Programme "Environment 2010:Our Future Our Choice". Being a market-based instrument, the primary function of the EU Eco-label is to stimulate both the supply and demand of products with a reduced environmental impact. With respect to supply, the EU Eco-label has a clear objective of encouraging businesses to market greener, officially licensed products. On the demand side, the scheme gives you as a European consumer the means to make informed environmental choices when purchasing.  The Flower is your assurance of European green authenticity. At the same time, products eco-labelled in the EU scheme can give you the guarantee that their compliance with established ecological criteria has been tested by independent third parties, the national and regional Eco-label Competent Bodies. Example: life cycle of a detergent

What could be the environmental benefits linked to the development of EU Eco-labelled products ? With only a modest 5% market share for EU Eco-labelled products in the European Union, the savings compared to typically performing versions (standard product) would be substantial : RESOURCE SAVED /AVOIDED PER YEAR Amount saved per year Electricity 14,700,000 kWh CO2 produced from energy use 9,318,000 tonnes CO2 Water use 12,285,000 million litres Reduced use of hazardous substances 13,800 tonnes Material savings (other than hazardous substances) 530,700 tonnes Reduced discharges to water 30,400 tonnes COD Reduced air pollution 17,500 tonnes pollutants These data are extracted from a study made for the European Commission on the Direct and Indirect Benefits of the European Ecolabel – Final Report Nov 2004, AEAT For every product group, the most significative environmental benefits were compared to standard products, which enabled to evaluate the gain between an eco-labelled product and a standard product. Considering market data of every product group and a potential 5% market share of eco-labelled products, the global environmental benefits were calculated. Source: « The Direct and Indirect benefits of the Eco-label », AEAT in Confidence, 2004

The EU Eco-label can be used to do green public procurement Examples of successful call for tenders: “Communauté urbaine de Dunkerque”, France: use of some EU Eco-label criteria in a call for tender of all-purpose cleaners for the cleaning of public premises City of Angers, France: progressive use of the whole set of EU Eco-label criteria for all-purpose cleaners in a 3-year period of call for tenders for the cleaning of public premises French green building programme “HQE” recommends the use of eco-labelled paints and varnishes for new public buildings … This is a non-exhaustive list of examples, based on the knowledge of BIO IS (French company)

What is the size of the market of European Eco-labelled products 260 holders as of September 2005 About 2 500 articles split in 23 product groups

What are the advantages of using the EU Eco-label in GPP approaches You do not have to be an expert in environmental issues to do green purchasing The EU Eco-label is an official European recognition of the ecological quality of a product The requirements for the award of the EU Eco-label relate to both technical performance and environmental characteristics of the product The EU Eco-label covers 23 product and service groups, including products bought by public purchasers; cleaning products, office equipment, DIY, tourist accommodations… European consensus on the scientific reliability of the criteria The EU Eco-label criteria take into account the main environmental impacts of a product and the technically possible improvements. These criteria are established at the European level by the EU Ecolabelling Board. This Board involves the European Commission, the national EU Eco-label competent bodies, industry, consumers, environmentalists, trade unions and SMEs. This ensures a transparent procedure, European-wide consensus on the scientific reliability of the criteria and credibility in terms of protection to the environment and product efficiency.

The European Eco-label scheme is What are the advantages of using the EU Eco-label in GPP approaches? (2/3) You are sure of using a scheme that is fully compatible with the Internal Market Principles The European Eco-label scheme is Public, transparent and non discriminatory Valid and identical throughout the European Union and EEA countries Open to overseas products (guarantee to offer equal opportunities to all competitors) The EU Eco-label scheme is public, transparent and non discriminatory. It is valid and identical throughout the European Union, as well as the EEA countries (Norway, Iceland, and Liechtenstein). Overseas products can also be awarded the EU Eco-label under exactly the same conditions as EU products. Therefore you are guaranteed to offer equal opportunities to all competitors.

What are the advantages of using the EU Eco-label in GPP approaches You directly know the minimum number of companies capable of meeting your requirements. On the Green Store : www.eco-label.com The interactive catalogue allows finding out about products in all European member states that carry the EU Eco-label and can give an appreciation of the minimum size of the market and where you can buy them.

In the elaboration of the technical specifications Practically, how can the European Eco-label criteria can be used in a public call for tenders ? (1/2) In the elaboration of the technical specifications In order to define the characteristics of the products or service considered, you can directly cut and paste the relevant EU Eco-label criteria into the technical specifications The EU Eco-label will be allowed as a way of proving compliance with the specifications. Remark: Contracting authorities cannot require tenderers to be registered under a certain eco-label scheme. The Interpretative Communication makes it clear that there is considerable room for green public procurement under the public procurement Directives.  Technical specifications Under the public procurement Directives is possible to integrate environmental considerations into public purchases at different stages of the procedure. First of all in setting the technical specifications of the call for tender. At this stage it is possible to prescribe which basic or primary materials shall be used, to require the use of a specific production process, as well as to refer to Eco-labels. (It has to be noted however that the utilisation of Eco-labels is subject to specific conditions and the public authorities have to accept also other means of proof in order to guarantee the respect of principle of non- discrimination. Advice on using Eco-labels legally under the public procurement Directives is contained in Buying Green, a handbook on environmental public procurement, EU 2004.

Practically, how can the European Eco-label criteria can be used in a public call for tenders ? (1/2) Use of variants: In order to have more flexibility, use variants when drafting the technical specifications, e.g.: Variant 1: no environmental specification Variant 2: some EU Eco-label criteria Variant 3: all EU Eco-label criteria At the end of the call for tenders, the choice between standard solutions and variants, between different variants and within a given category of offers (e.g. within a given variant) must be made in accordance with your award criteria (obligatorily the most economically advantageous of the offers). It is possible that, even after conducting a market analysis, you are not sure whether any green alternatives to the products, services or works you want to purchase exist, or that you remain unsure about their quality or price. If this is the case, it may be interesting to ask potential bidders to submit green variants. This means that you establish a minimal set of technical specifications for the product you want to purchase, which will apply to both the neutral offer and its green variant. For the latter, you will add an environmental dimension. Hence, you can use variants to support the environment by allowing a comparison between standard solutions and environment-friendly options (based on the same standard technical requirements). Companies are free to provide offers based on the variant or the initial tender, unless indicated otherwise by the contracting authority. To be able to accept variants in a public procurement procedure, you need to indicate in advance in the tender documents: • that variants will be accepted, • the minimum environmental specifications the variants have to meet (e.g. better environmental performance), • specific requirements for presenting variants in bids (such as requiring a separate envelope indicating variant or indicating that a variant can only be submitted combined with a neutral bid).

Example: call for tenders of all-purpose cleaners Go to the all-purpose cleaners page of the Eco-label web site: www.europa.eu.int/ecolabel

A summary of the criteria can be found in the general description of the product group The complete criteria are available in all the EU languages

Example: call for tenders of light bulbs Practically, how can the European Eco-label criteria can be used in a public call for tenders ? (2/2) The EU Eco-label can be used as a benchmark against which to assess offers at the award stage. Example: call for tenders of light bulbs The EU eco-label criteria for light bulbs require that they should have an average life-span of 10 000 hours. When reflecting this in a call for tender for light bulbs, 10 000 hours could be set as the technical specification for the minimum life span, and a bonus point could be given in the award criteria for every 1000 hours over and above 10 000. The Interpretative Communication makes it clear that there is considerable room for green public procurement under the public procurement Directives.  Definition of the subject of the contract The main possibilities of taking into account the environmental issues are to be found when the subject of the contract is being defined: these decisions are not covered by the directives but they have to comply with the EC Treaty provisions and principles as mentioned above. The public authorities could, for example, define that public transport services are to be carried out by electrical buses. Technical specifications Under the public procurement Directives is possible to integrate environmental considerations into public purchases at different stages of the procedure. First of all in setting the technical specifications of the call for tender. At this stage it is possible to prescribe which basic or primary materials shall be used, to require the use of a specific production process, as well as to refer to Eco-labels. (It has to be noted however that the utilisation of Eco-labels is subject to specific conditions and the public authorities have to accept also other means of proof in order to guarantee the respect of principle of non- discrimination. Advice on using Eco-labels legally under the public procurement Directives is contained in Buying Green, a handbook on environmental public procurement, EU 2004. Selection of the candidates The selection of the candidates is the stage at which the public authority evaluates the technical capacity, the financial and economic standing of the future contractors as well as the absence of conditions which could justify a candidate?s exclusion from participating in a public contract, such as grave professional misconduct. There are possibilities for the contracting authorities to introduce environmental specifications in the selection criteria of the call for tender: they can exclude, for example, a contractor that has been found guilty of an environmental offence qualified as a professional misconduct by the national law. For contracts with an environmental dimension, the public authority may also require that the contractor possesses the requisite technical competence in the environmental field when this is required by the subject matter of the contract, and may accept an EMAS registration or ISO 14001 certification as one of the possible means of proof of this

Success stories « Communauté urbaine de Dunkerque », France City of Angers, France

« Communauté urbaine de Dunkerque », France Profile of the Communauté Urbaine de Dunkerque Group of 18 municipalities 212 241 inhabitants Number of employees : 1 319 agents Green purchasing was initiated by the sustainable development department. Now, the purchasers themselves draw the environmental specifications. This can be considered as an appropriation of the GPP approach.

« Communauté urbaine de Dunkerque », France Internal organisation Political act adoption of a ‘délibération’ relative to sustainable development in public procurement General approach Categories of products concerned by GPP: Paper, cleaning products, electronic appliances, light bulbs and phytosanitary products Demand of the purchasing department Research of environmental issues Research of ecological alternatives Study of the offer Setting of the market in function of the offer A ‘déliberation’ (official and durable act) related to sustainable development in public procurement was adopted by Dunkerque.  This deliberation mentions that the city begins to gradually integrate references to take into account sustainable development in its purchases.   Method Purchasing departments, which wish to integrate environmental characteristics, contact the Sustainable Development department to identify environmental issues related to the products they want to purchase.   According to the identified environmental issues, ecological alternatives as well as information on the potential suppliers is researched and analyzed (information is primarily found on the Internet and exchanges within networks).  According to the availability of more ecological products the "environment" cursor is placed more or less high (this point is presented in a following slide).

« Communauté urbaine de Dunkerque », France Example of a tender of cleaning products Reasons for choosing this product category: Test tender (all purpose cleaners, window cleaners…) Existence of ecological criteria Identified environmental issues Limitation of water pollution Characteristics inserted in the technical specifications: High biodegradability rate Natural substances Limitation of the use of hazardous substances for the environment and health (based on the DID-list) Cleaning products were chosen because they are widely consumed within the city and because the European Eco-label covers this product group.   The environmental issue chosen is to limit water pollution because detergents contribute to damage the aquatic environment. (eutrophication and dangerous substances) The environmental criteria considered are •         Biodegradability rate : in reference to the European Eco-label criteria •         Dangerous substances content : in reference to the Detergent Ingredient Database of the European Eco-label (DID List)

« Communauté urbaine de Dunkerque », France Example of a call for tender of cleaning products Used reference European Eco-label (some criteria) Demand of samples to test the efficiency of the products Results Necessity to divide the tender into lots, to ensure SMEs will answer No over-cost Very positive feedback from employees: efficiency and lack of respiratory and skin irritations Samples were requested from the suppliers in order to test the technical performance.  This test was very positive: only one sample did not appear effective.   Results:  The call for tenders was fruitful and there was a very positive feedback from employees ( efficiency and lack of respiratory and skin irritations)

Profile of the city of Angers City of Angers, France Profile of the city of Angers 157 000 inhabitants Number of employees : 2750 agents Global budget of the city : 250 million euros Green Procurement, as part of the Agenda 21, is managed by the Directorate General, in partnership with the Sustainable Development department, the Public Procurement department and purchasing directorates.

City of Angers, France Internal organisation Creation of working groups on every topic General methodology Categories of products concerned by GPP: School furniture, cleaning products, cleaning of public premises, textiles, school supply, coffee, paper Study of the offer and discussion with suppliers Research of corresponding environmental issues Analysis of financial equilibrium Needs analysis Analysis of suppliers’ potential progresses General methodology The approach was initiated thanks to the strong will of elected representatives: - Identify the needs - Know the offer, the market: use of product groups covered by the EU Eco-label for cleaning products to have a good basis for a start - Know the environmental considerations that can be inserted and discuss with suppliers to avoid unfruitful call for tenders (before the consultation period to know the market of potential suppliers) Analyse the financial equilibrium (no significant over cost which cannot be justified) Analyse the potential progresses of the supplier every year: analyse MSDS of the products used, identification of the products having a potential impact on the environment and health and research of alternatives with the supplier

Example of a call for tender for cleaning services City of Angers, France Example of a call for tender for cleaning services Reasons for choosing this product category Important consumption Existence of environmental criteria Identified environmental issues Mainly linked to the use of cleaning products: Limitation of the use of hazardous substances for the environment and health Limitation of water pollution Reduction of packaging waste

Example of a call for tender of cleaning products City of Angers, France Example of a call for tender of cleaning products Characteristics Use of products complying with the EU Eco-label criteria Example of reference used EU Eco-label Results The call for tender was fruitful. Progressive approach (3-year call for tender): Year 1: no ecological specification Year 2: use of 1 product complying with all EU Eco-label criteria Year 3: use of 2 products complying with all EU Eco-label criteria This call for tenders was produced in order to initiate continuous improvements in the offer of eco-products from suppliers, giving them the time to adapt themselves to stricter and stricter specifications. .

Conclusion Public purchasers become actors of Sustainable Development. It is possible to do Green Public Procurement thanks to the revised European Procurement Directives. The European Eco-label makes it easy to implement GPP in a practical way. The Success Stories demonstrate it is possible to use the EU Eco-label to do GPP.