1. Sustainable Public Procurement Swedish experience of implementation Jon Lyons – Country Representative, Mongolia 26 November 2015

2. Public Procurement & Green Growth Rio ‘92 – Brundtland (N) defined ‘Sustainable Development’ Conceptual foundation of ‘Green Growth’ Green Public Procurement Using public funding for environmental considerations in procurement Green Growth Procurement Combining poverty reduction with climate change mitigation by including environmental, social, and other relevant criteria in procurement Preferably making use of procurement for innovation (PFI) Remember – conflicts will increase as natural resources become scarce and natural disasters increase

3. Time Why does Procurement Play a Role?

4. Sweden – Context for Success Story Time 10 million people 450,295 square kilometres (the 55th-largest country in the world) 1,572 km north to south HDI (2013) 0,898 (very high – 12th) GDP (2014) $570.6 bn (21st) Four distinct seasons – average 20 to 25 °C (38 °C) to −4 to 2 °C (−52.6 °C) Constitutional monarchy Parliamentary democracy

5. GGGI expert: Mr. Sven Erik Hargeskog Time Procurement for Value for money Business development Green and CSR improvements Innovation Growth in developing countries Experience from Private sector Small/medium/large Services/manufacturing industry Public sector Central government Developing new functions In-house procurement services Coordination of government procurement Green public procurement Procurement for innovation Senior advisor to EU, OECD, UN, misc. Governments…

6. Sweden – How did SPP process start? Time Support of those responsible for Government in-house procurement: 450 central government agencies Specifications/TORs Framework Agreements Advice = Critical mass for green procurement Consequently, government investigation was initiated: Ecologically Sustainable Procurement Three years Selected members & experts How to increase green procurement

7. Sweden – ES Procurement Results Time Report with recommendations Create a lead organization Develop a toolbox for specifications Develop LCA 1 tool for Total Cost of Ownership (TCO) Provide training and advice Support and promote Eco-labels Assign pilot procurement authorities Annual conference with prize award  1 Life Cycle Analysis H.E. Crown Princess Victoria of Sweden

8. Sweden – Lead PP Organization Time Swedish Environment Management Company Limited company (90% public, 10% private) – Now integrated into the Swedish National Agency for Public Procurement http://www.upphandlingsmyndigheten.se/en Two areas: –Public Procurement –Sustainable Public Procurement –To emphasize the importance of the latter Toolbox, LCA, support/help-desk, advice, etc.

9. Sweden – SPP Toolbox Time In compliance with the Public Procurement Laws Open for all >100 specifications, many in English Three levels: –Basic –Advanced –Spearhead Prioritization on development: –Low hanging fruits –High volume –Big impact

10. Sweden – Other tools & activities Time TCO/LCC calculating CSR compass Eco-labels (as proof of compliance) Annual Prize award (I’m in the jury) –Best sustainable public procurement organization –Most sustainable tenderer to public sector Pilot authorities for green procurement– by government decree Obliged to use green criteria –Proficient buyers –Large volumes –Big impact – also on the whole market and consumers Annual report Initially 10 Increased successively to 25, 100, then all

11. Sweden – Other key actor Time The Swedish Energy Agency Lower energy consumption Test lab Labelling  Competition with published and marketed results Advisory services and web-support

12. Recommendations - Roadmap Time Establish a lead organization Create incentives –Buyers –Supplier market Find or create critical mass Cooperate Consider subsidies Put it on the political agenda International benchmarking Enable in PP Law Communicate (e.g. Eco-labels) Invite external ‘ambassadors’ Be persistent – it takes time

13. Recommendations – After 1 st Phase… Time Procurement for innovation –Open up for green innovations Grants for local green-tech companies (SME, micro enterprises) –Export opportunities – a huge potential –Based on Mongolia’s unique prerequisites

14. Баярлалаа! Thank you for your attention! Global Green Growth Institute www.gggi.org GGGI Mongolia contacts: Country Representative – jon.lyons@gggi.org