International Review of Waste Management Policy - Department of ...

57.2 Benefits of Green Procurement
In total, public authorities across Europe have the purchasing power equivalent to a
16% share of the EU’s gross domestic product, amounting to almost €2,000 billion
per year. 1054 This vast sum of money is commonly spent within sectors which have
relatively high environmental impacts, for example, construction, waste management,
transport and energy.
The significant market leverage force held by public authorities can influence
suppliers, and innovation and production, of ‘greener’ products and services. 1055 The
force of public procurement may have the capacity to reduce the unit costs through
increasing demand for ‘greener’ products. Furthermore, this has the potential to
influence the behaviour and consumption habits of the private sector and general
public when purchasing good and services, not least by enhancing the availability of
product information.
Reducing the environmental impact of the public sector, and potential improvements
this may have upon procurement within the private sector, are expected to result in
reduced carbon emissions, reduced waste and increased water efficiency. These
environmental impacts will often help to meet various national and European
environmental targets which have been agreed.
57.3 Regulatory Framework
In the past, concerns were raised regarding potential problems, including distortion of
the single market and reduction of competition within the EU, as the uptake of Green
Public Procurement policies increased across Member States. The need for continuity
in policies from country to country led to the development of the EU regulatory
framework as it stands today, which is shown in Figure 57-1. This framework has
developed under the Treaty of the Amsterdam in 1997, in which sustainable
development became a fundamental objective; the 2001 Gothenburg Summit, which
launched the first EU sustainable development strategy; and the 2002 World Summit
on Sustainable Development in Johannesburg, during which a Plan of Implementation
was agreed stating that all relevant authorities at all levels should,
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“promote public procurement policies that encourage development and
diffusion of environmentally sound goods and service.” 1056
1054 European Commission (2008) Quote from Stavros Dimas, EU Commissioner for Environment,
http://ec.europa.eu/environment/gpp/background_en.htm
1055 Öko-Institut and Iclei (2007) Costs and Benefits of Green Public Procurement in Europe, Available:
http://ec.europa.eu/environment/gpp/index_en.htm .
1056 IDeA Procurement (2003) Sustainability and Local Government Procurement, Improvement and
Development Agency for Local Government, Available: http://www.idea.gov.uk/idk/aio/1701515
International Review of Waste Policy: Annexes