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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

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