What is Green Public Procurement (GPP)?
Does GPP require higher expenditures?
The publication “Procuring Green: A Handbook for policymakers and public procurers. Volume 1: Good and Services” elucidates in section 3.7 several strategies that public entities can employ to further reduce the purchasing price of green products.
What is lifecycle costing?
To implement GPP, public entities can use lifecycle costing to compare offers based on value-for-money across the asset´s lifecycle. For different types of products, lifecycle costing is already advanced and online calculation tools are available. For example: http://www.smart-spp.eu/guidance
Can Eco-Labels help to procure green?
Eco-labels can be a helpful means to facilitate the procurement of green products. Tender specifications should not demand compliance with an eco-label since this tends to prevent open and fair competition (and indeed in some countries this is prohibited) but procurers can use eco-labels as point of reference for identifying relevant criteria for procuring green. Procurers can also use the label as a means of verification of the requirements they put down in the tender.
Why undertake GPP in Bhutan now?
Section 1.3 of the publication “Procuring Green: A Handbook for policymakers and public procurers. Volume 1: Good and Services” provides further details about economic, social and environmental benefits that GPP can foster in Bhutan.
Does the national law in Bhutan allow to implement GPP?
Public procurers in Bhutan can therefore begin to include environmental and social evaluation criteria in accordance with Bhutanese procurement rules.
For a full review of the Procurement Rules and Regulations (2009) in light of GPP please see GPP Bhutan’s research report, “Legal Analysis of the Public Procurement Framework in Bhutan: Prospects for Procuring Green”.
How to start implementing GPP?
- Pre-qualification as means to ensure all bids being submitted meet minimum quality standards and capacity. For example, public procurers could request compliance with environmental and (domestic or international) labour laws, track records on contracting for the provision of green goods and services, established Environmental Management System as per ISO14001 or equivalent;
- Tender specifications: Define technical or functional/performance-based tender specifications on environmental and social matters that have to be fulfilled by desired solutions;
- Award methodology: Integrate lifecycle thinking as well as further environmental and social award criteria with significant weightings as part of the award methodology for contracts.
In the early stages of GPP, public procurers should reward suppliers that prioritize the delivery of sustainable goods and services while not crowding out those that do not. Therefore, making sustainability an option, rather than a mandatory requirement, is a good way to start introducing sustainability into public procurement. As markets for sustainable goods and services mature and an increasing array of products and services begin to appear on the market, procurers can move to include environmental and social performance in technical and functional specifications as well as mandatory requirements for the pre-qualification of suppliers.
Section 4.3 of the publication “Procuring Green: A Handbook for policymakers and public procurers. Volume 1: Good and Services” provides further details.