Keeping up the momentum following publication of the draft Framework for Sustainable Development of Ireland, both the Minister for the Environment, Community and Local Government and the Minister for Public Expenditure and Service Reform have published an Action Plan on Green Procurement. Quite apart from the initiative in its own right what is also welcome is the recognition across two Departments that a horizontal policy such as procurement cannot simply be left within a particular Departmental silo. Such thinking might also be applied when it comes to public service reform generally and could usefully be applied with the forthcoming publication of the Local Government Policy Paper!
Nonetheless the Action Plan does mark an obligation set out in the Programme for Government and reflects what has been an on-going recognition of the importance of applying a strategic view to green procurement which commenced under the previous Government. Total public procurement by the Irish public sector amounts to over €15 billion annually so getting this level of procurement to include sustainability principles will mark an important step in the overall process of creating a sustainable economy and society. The thinking is one of moving the market by incentive rather than the usual forms of regulation and penalty so, for a change, sustainable development can be seen as a positive economic force rather than being perceived as a policy arena which places barriers to development. A key aspect of this is about creating an indigenous enterprise sector, over time, which can compete internationally for a burgeoning green procurement marketplace, a central feature of the Europe 2020 initiative.
So what is involved?
As already acknowledged above there is already a highly developed regulatory framework on environmental matters. This has had the effect of creating a large environmental sector in Ireland. The focus now is to more radically move procurement to build on the recent growth of this sector. The policy has as central objectives across the public sector:
• Ensuring that goods and services procured continue to
be fit for purpose, cost-effective and meet the needs
and expectations of society
• Procurement of goods that are durable, repairable, have
reduced hazardous substances and are re-usable
• Reduction of Ireland’s dependence on energy derived from
fossil fuels
• Reduction of energy consumption and associated costs
• Reduction of CO² and other greenhouse gas and
ozone depleting substance emissions
• Promotion of health
• Enhancement of competitiveness and encourage innovation
• Protection and enhancement of biodiversity
• Support for high water quality
• Support for good soil quality
• Transforming waste streams into waste resources
Achieving the above objectives will mean that those engaged in public procuring must now begin to embed green procurement criteria into the procurement process. This means that the assessment criteria resulting in the decision to award a contract must now, when contracts are being awarded on a most economically advantageous basis:
• Clearly mention environmental criteria in the tender
• These criteria must be related to the subject matter
• The criteria must be objectively quantifiable and verifiable, and
• Be weighted (e.g. stating what %-age of the overall marks
are given to a particular award criterion)
The Green Tenders Plan has identified 8 areas for application of green procurement.
1. Construction
2. Energy
3. Transport
4. Food and catering services
5. Cleaning products and services
6. Paper
7. Uniforms and other textiles
8. ICT
The potential of each is examined in detail in the Plan. So, for example, in construction the use of energy, the materials and the construction design are all examined in terms of their green potential and relevance therefore to the Green Procurement Process. Each area has a range of actions highlighted for implementation of the Plan. These will become the basis for on-going evaluation of the overall policy and the expected outcomes arising as a result of comprehensive implementation.
In addition to taking a direct role in green procurement, a further aspect of the Plan is to establish the public service generally as an agent of best practice. Given the scale of the public sector in Ireland and throughout Europe there is little argument but that the Public Services will be key to mainstreaming green procurement into the wider economy. It will do this not just through the real incentive for private companies competing for public service contracts but also by becoming practical demonstrators of the benefits of green procurement to the overall performance of the economy and the contribution green tendering can and will make to a sustainable society. By creating a huge market those companies best positioned to meet the green criteria will be advantaged in winning public contracts but also will be encouraged to make “greening the company” a realistic corporate policy option.
Making it happen of course is not simply a question of publishing a plan, no matter how well written. There will have to be a clear focus on training procurement officers throughout the public sector to make sure that the plan can be implemented without creating unnecessary risks or potential liabilities for public bodies. This will require a commitment to resourcing such training over a relatively immediate timescale if the policy is to advance. In the long-term such training will generate a very real return to the economy as, given the trends in the international market place and likely continuing European regulation, a green economy is the only added value future for the Irish economy.
