Sustainable Public Procurement (SPP)

1. Sustainable Public Procurement (SPP) Module 6. Coordination of GPP and Ecolabelling Programs in different countries

2. Acknowledgment: This presentation have been developed by Aure Adell based on the documents: “Green Public Procurement & Ecolabelling in China” (by Sonal Parasnis) and “The Use of Ecolabels and VSS in SPP. Documentation of the use of common Product’s Ecolabels and Voluntary Sustainability Standards in Sustainable Public Procurement” (by Ecoinstitut). The author also wants to thank Zhang Xiaodan, Chen Yiqun, Ding Ling and Wang Cheng for the additional input. Use: The material can be used free of charge, provided it is used within UNEP's SPP and Ecolabeling activities. It may also be reused in other contexts provided that: 1) it is reused in a suitable manner, that is not misleading, 2) it excludes the UNEP logo and 3) it acknowledges UNEP's ownership and Aure Adellt’s authorship – you can use the following wording: Presentation prepared by XXX using as basis UNEP’s SPP Training Toolkit slides prepared by Aure Adell. Statement: Given the diversity of legal contexts where the material will be used, the people in charge of using the material and the receiving administrations must assess (either by themselves or with independent legal advice) the suitability and legality of the examples offered within their specific context and modify them accordingly.

3. Policy Framework Evolution Energy Label and Eco-Label GPP Policies and implementation activities Monitoring system and results Challenges & Success factors GPP and Type I Ecolabeling in China

4. Evolution of the Policy Framework

5. Policy Framework over the years… • China Environmental Labelling Program launched by the Ministry of Environmental Protection (formerly the State Environmental Protection Administration) 1993

6. Policy Framework over the years… 1993 • Energy Conservation Certification launched by China Standard Certification Centre 1998

7. Policy Framework over the years… 1993 1998 • Promotion of Clean Production Law • Requires governments to prioritise the procurement of energy and water saving and recycled products 2002

8. Policy Framework over the years… 1993 1998 • Government Procurement Law • Covers the procurement by the national government and regional and local authorities (excludes Public Companies and stand-alone infrastructure projects) • Stipulates that public authorities should give priority to products that are environmental friendly and use resources efficiently • It covers works, goods and services listed in certain catalogues or above certain threshold 2002 2003

9. Policy Framework over the years… 1993 1998 2002 • Ministerial Regulation for Implementation of Government Procurement for Energy Conservation Products (ECP) • Requires governments to give higher preference in procurement to energy-saving products included in the ECP List • By MOF and NDRC • Voluntary 2003 2004

10. Policy Framework over the years… 1993 1998 2002 • Ministerial Regulation for Implementation of Government Procurement for Environmental Labelled Products (ELP) • Requires governments to give higher preference in procurement to products in the ELP List • By MOF and MEP • Voluntary 2003 2004 2006

11. Policy Framework over the years… 1993 1998 2002 2003 2004 • State Council Regulation on Compulsory Government Procurementfor Energy Conservation Products • Establishes compulsory procurement of 9 energy-saving product categories within the ECP List • By State Council 2006 2007

12. Policy Framework over the years… 1993 1998 2002 2003 2004 2006 • Energy Conservation Law • Includes preferential procurement of energy- saving products • By State Council 2007 2008

13. Policy Framework over the years… 1993 1998 2002 2003 2004 2006 • Promotion of Circular Economy Law • Establishes preferential procurement of energy- / water- / material-saving, environmentally friendly and renewable products • By State Council 2007 2008

14. Policy Framework over the years… • Different types of policies promoting GPP within the public sector (in procurement law, national environmental laws and ministerial and state regulations) • Involvement of different Ministries and National Government institutions (NPC, NDRC, MOF and MEP) • Strong focus on energy-saving products • Linked to national ecolabelling programmes

15. Question to participants: • Do you have any question regarding the Chinese Government’s policy framework to support GPP (inclusion in procurement and env. laws, promotion through gov. regulations, link to national ecolabels)? • What positive aspects you take with you?

16. China Energy Conservation and Environmental Labels Main characteristics Green Label institutional framework Product categories and certified products

17. China Energy Conservation Certification • Voluntary • China • Certifies products • Type of information: Leadership • One life-cycle stages in consideration • One Impact addressed (energy) • Multiple sectors covered • Third-party verification http://www.cecp.org.cn/former/englishhtml/cecp.asp

18. Energy Label Institutional Framework Source: Hu, B. and YI, S. (2014) Status Report of China’s Green Government Procurement. Top10.cn.

19. Energy Label Product Categories • About 120 product groups (in 2014): • Appliances: refrigerators, air conditioners, water heaters, microwaves, etc. • Lighting: ballasts, fluorescent lamps, sodium lamps, metal-halide lamps, etc. • Industry: air compressors, motors, fittings, etc. • Office equipments: TV, DVD, printers, copiers, faxes, computers, monitors, etc. • Building material: windows, foam boards, insulating materials, etc. • New energy resources: solar water heating, gas appliances

20. China Environmental Label • Voluntary • China • Certifies products • Type of information: Leadership • All life-cycle stages in consideration • Multi-Impact addressed • Multiple sectors covered • Third-party verification http://www.cecp.org.cn/former/englishhtml/cecp.asp

21. Environmental Label Institutional Framework MEP Give proposals Final criteria approval and publication Authorises EDC to develop criteria Interested Parties (companies) Environmental Develop. Center Interested Parties Working groups Criteria development Relevant industry associations Testing organizations, Research institutes and enterprises Participate in the working groups Source: Government public procurement and environmental labeling in China. Environmental certification center [slides], 2013.

22. Environmental Label Product Categories • Total of 98 product groups (in 2015): • Household appliances: refrigerators, air conditioners, water heaters, microwaves, etc. • Office equipments: printers, copiers, faxes, computers, monitors, etc. • Office stationary: paper, stationary, cartidges, etc. • Building material: wood-based panels, cement products, building ceramics, lightweight construction materials, etc. • Others: paints, furniture, sanitary wares, solar systems, etc. • Selected based on market demands and capacity to reduce the environmental impacts.

23. Environmental Label Evolution As of December 2014, more than 200,000 products have been certified

24. Question to participants: • Any questions regarding the China Environmental Label? Organisations involved? Product/Service groups covered? Evolution over time?

25. The Implementation of Green Public Procurement Policy objectives and commitments Information resources Recognition of good practices

26. GPP Policy Framework Regulation for Implementation of Government Procurement for Environmental Labelled Products • Elaborate and regularly maintain a Procurement List of Environmental Labelled Products (ELP List) • Agencies to preferentially purchase products included in the ECP List by clearly stipulate in the tenders the List requirements, the range of preference and the evaluation criteria

27. GPP Policy Framework Regulation for Implementation of Government Procurement for Energy Conservation Products • Elaborate and regularly maintain a Procurement List of Energy Conservation Products (ECP List) • Agencies to preferentially purchase energy-saving products included in the ECP List by: • For optional categories: clearly stipulate in the tenders the List requirements, the range of preference and the evaluation criteria • For compulsory categories: require compliance with the List requirements and its inclusion in the ECP List as mandatory technical specification in the tender documents (unlisted products are automatically excluded)

28. GPP Institutional framework CEC Source: Hu, B. and YI, S. (2014) Status Report of China’s Green Government Procurement. Top10.cn.

29. GPP Information Resources To support GPP implementation the government provides: • The lists organise certified products by product groups and, for each of them provide information on their producers and certificates • MOF and MEP do policy announcements for each revision of the lists • Product lists are published on various websites (MOF, MEP, CCGP, CGPN) and sent to local government agencies and procurement centres ECP & ELP Lists +

30. GPP Information Resources

31. GPP Information Resources

32. GPP Information Resources • The Lists are created by considering the following (based on the State Council Regulation of 2006 and 2007): • Products must be certificated by the energy saving products certification agency or by the Environmental Labelling product certification organization. • The products must have enough production lot, mature technology, reliable quality • There are perfect supply systems and good after­sale service of the products

33. GPP Information Resources To support GPP the government provides: • MOF regularly conducts training of local government purchasing agencies. • At least once in a year, but may be more according to the specific situation • Local provincial procurement centers also organize training workshops as necessary. GPP training +

34. Other Support Measures • Chinese Green Purchasing Network : Created by the Environmental Development Center (of MEP) for for promotion of GPP and sustainable consumption. • Green Printing Programme : collaboration agreement between MEP and the General Administration of Press and Publication to produce ecolabeled textbooks for primary and secondary schools • Subsidies for green vehicles (in 2009) • International cooperation projects : such as EU SWITCH-Asia Programme ; SPPEL project ; etc.

35. Question to participants: • What would you like to know better about the Chinese GPP approach (regulations, involved organisations, support measures in place? In relation to your own government… • What elements do you like of the Chinese strategy and should be considered in your country?

36. Monitoring system and results Monitoring system Level of GPP implementation Market transformation Benefits of GPP

37. GPP Monitoring System • Not yet standardised for all government agencies • In process to establish a system that will foster implementation • The government is working on the establishment of unified Public Resources Trading Platform with unified rules for the whole country by mid 2017

38. Results: GPP Implementation ± 82% 91,06 billion RMB in Energy Conversing products (in 2011) ± 75% 176.24 billion RMB in Ecolabelled products (in 2014)

39. Results: Market transformation • Number of product models in the ELP List (in each version)

40. Results: Market transformation • Number of companies in the ELP List (in each version)

41. Results: Environmental benefits, ELP • The purchase of ELP represent the following benefits: • Reduction of 205,000 t VOCs emission = 25 times of the planned emission reduction of Beijing Municipality in the same year • Reduction of 859 t O₂ emission = an increase of 4.69 m³ forest volume • Reduction of 1,232 t phosphorus emission = about 1/10 of the annual total phosphorus emission of the Taihu Lake watershed • Reduction of 16.75 t Hg emission = the Hg content of 280 million No.5 batteries

42. Results: Environmental benefits, ELP • If we consider the annual purchases of printers and laptops by the national government – the main electronic products purchased by the government (about 10,000 units/each), the benefits of buying them green are: • 1.58 million KWh of electricity saved • 430 t of dust reduced • 1,575 t CO₂ , 47 t SO₂ and 23.7 t NOx not emitted

43. Question to participants: • Do you have questions regarding the monitoring and evaluation system of the Chinese Government?

44. Challenges & Success Factors

45. Success Factors • Having laws and regulations providing basic support for GPP, specially the requirement in the procurement law and the obligation to buy certain energy-efficient products • Linking GPP to Ecolabels • Elaboration of the two certified products Lists

46. Challenges • The GPP policies should be improved as it’s not complete. There is no specific GPP law in China (however related requirements were include in the government procurement law). • Complicated hierarchical structure of government procurement creates confusion about GPP • Lack of common and standardised procurement procedures, templates and tools  still in development, making monitoring difficult • Lack of knowledge on GPP

47. Challenges • Limited scope of GPP, both in terms of categories and organisations covered: • GPP applies only to the procurement of certified products (or services using them), but it excludes construction projects – smaller market. • The number of designated products is still small, and for many agencies GPP requirements apply to very few number of purchases. • An important public sector (State-owned companies and similar) are not included in the current GPP framework even though they account for more than 75% of the whole public sector procurement.

48. Way Forward • GPP has to be promoted more intensively in all public authorities (local, regional and national) • More resources need to be provided to support public authorities in conducting their GPP

49. Question to participants: Any additional thing you would like to ask? Or get more clarifications on? Or discuss?