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5.6<br />
REWARDING BENEFITS THROUGH PAYMENTS AND MARKETS<br />
“By giving a clear signal to all parties<br />
involved in the procurement process,<br />
public authorities can draw new<br />
environmental technologies into the<br />
market place that in turn have the<br />
potential to strengthen the<br />
competitiveness of European<br />
industry.<br />
Green Public Procurement will<br />
also help EU Member States meet<br />
obligations for energy-efficiency in<br />
buildings, energy services and<br />
reduced CO 2 emissions. The potential<br />
of this instrument is enormous and<br />
I recommend that public administrations,<br />
at all levels, turn policy into<br />
practice and demonstrate their<br />
willingness to 'green' Europe.”<br />
Stavros Dimas, EU Commissioner for Environment<br />
5.6.1 OBJECTIVES AND TAKE-UP<br />
OF GPP POLICIES<br />
GREEN PUBLIC PROCUREMENT (GPP)<br />
Green Public Procurement (GPP) means that public<br />
purchasers take account of environmental<br />
factors when buying products, services or<br />
works. A product or service can only qualify as<br />
‘green’ if it goes beyond what is required by law<br />
and beyond the performance of products commonly<br />
sold in the market. Whereas regulatory standards<br />
create a minimum baseline (see Chapter 7),<br />
GPP helps to green the markets: ecologically innovative<br />
products can increase market share and often get<br />
a price premium.<br />
Governments at all levels, public agencies and organisations<br />
can quickly make use of GPP to reduce<br />
pressures on biodiversity, drive or create markets for<br />
green products and green the supply chain. Their vast<br />
buying power – from offices and canteens to construction<br />
and transportation – can directly expand the<br />
market for products and services produced or supplied<br />
with less environmental impact (e.g. energy- and<br />
water-efficient devices and building techniques,<br />
non-hazardous or bio-degradable products, organic<br />
or seasonal food, sustainably produced timber and<br />
paper).<br />
GPP can facilitate eco-innovation because governments<br />
can take more risk when opting for new products,<br />
assuming the role of ‘launching customer’.<br />
This may create economies of scale and help companies<br />
to move up the learning curve, put innovative<br />
products on the market and create green-collar jobs.<br />
Less green products and services are progressively<br />
placed at a significant disadvantage when competing<br />
for government contracts.<br />
GPP has been rapidly developing since the early<br />
2000s and is now being mainstreamed by environmentally<br />
ambitious governments. The EU market for<br />
government purchases alone exceeds 1,500 billon<br />
EUR/year or 16% of EU Gross National Product. The<br />
European Commission has proposed to Member<br />
States that by 2010, 50% of their purchasing should<br />
be GPP. Some have chosen to set more ambitious<br />
targets e.g. in the Netherlands, the national government<br />
intends to purchase 100% green by 2010, with<br />
levels of 50 to 75% for local and regional governments<br />
(see Box 5.29).<br />
Many other large economies – including Japan,<br />
China, New Zealand, Korea and the US – also have<br />
formal policies in place that stimulate GPP (see Box<br />
5.30).<br />
<strong>TEEB</strong> FOR NATIONAL AND INTERNATIONAL POLICY MAKERS - CHAPTER 5: PAGE 56