Costs And Benefits Of Green Public Procurement In Europe
Costs and Benefits ofGreen Public Procurementin EuropeService contract number: DG ENV.G.2/SER/2006/0097rPart 3: The Potential of GPP for the Spreadingof New/Recently Developed EnvironmentalTechnologies – Case StudiesFreiburg, 26 July 2007ICLEI – Local Governments for SustainabilityÖko-Institut e.V.Freiburg Head OfficePO Box 50 02 4079028 FreiburgGermanyTel. 49 (0) 761 – 4 52 95-0Fax 49 (0) 761 – 4 52 95-88Address for visitors:Merzhauser Str. 173D-79100 FreiburgPeter DefranceschiMark HidsonDarmstadt OfficeRheinstr. 9564295 DarmstadtGermanyTel. 49 (0) 6151 – 81 91-0Fax 49 (0) 6151 – 81 91-33Berlin OfficeNovalisstr. 1010115 BerlinGermanyTel. 49 (0) 30 – 28 04 86-80Fax 49 (0) 30 – 28 04 86-88
DisclaimerNeither the European Commission nor any person acting on behalf of the Commission isresponsible for the use which might be made of the following information. The viewsexpressed in this publication are the sole responsibility of the authors and do not necessarilyreflect the views of the European Commission.
The Potential of GPP for the Spreading of New/RecentlyDeveloped Environmental Technologies – Case Studies(Part 3)Contents1Introduction12Selection of good practice examples13Methodology23.1Literature review23.2Selecting examples23.3Design of the questionnaire33.4Follow up interviews43.5The Case studies54Case study 1: Sustainable Procurement of Public Railcarswith the Eco-Technology ‘particle filters’ for the Taunusbahn,GERMANY64.1Background information74.2The new Eco-Technology84.3The drivers responsible for this new Eco-Technology84.4The tendering process94.4.1Developing the green procurement criteria94.4.2The green procurement criteria94.4.3Assessing the tender4.510Results of the tendering process and key factors that triggered themarket for Eco-Technology114.6Barriers and difficulties134.7Lessons se study 2: Sustainable Procurement of Bus shelters inBarcelona, SPAIN175.1Background information185.2Information on the product185.3The developed new Eco-Solution and Eco-Technology195.4The drivers responsible for this new Eco-technology20I
Costs and Benefits ofGreen Public Procurement in Europe(Final Report)5.55.6The tendering process215.5.1Developing the green procurement criteria215.5.2The green procurement criteria215.5.3Assessing the tender23Results of the tendering process and key factors that triggered themarket for the Eco-technology245.7Barriers and difficulties265.8Lessons ase study 3: ‘The better floorlamps’ of the City of Zurich,SWITZERLAND306.1Background information316.2Information on the product and the developed new Eco-Technology326.3The drivers responsible for procurement336.4The tendering process346.4.1Developing the green procurement criteria356.4.2The green procurement criteria356.5Results of the tendering process and the key factors that triggered themarket for the eco-technology376.6Barriers and difficulties396.7Lessons learned396.8Outlook406.9Summary417Case study 4: Sustainable Procurement of the Public LightingService of the City of Lille, FRANCE437.1Background information447.2Information on the product457.3The developed new Eco-Solution467.3.1IIIntegration of green criteria throughout the implementation of thetender467.3.2Continuous improvement through a ‘virtuous circle scheme’477.3.3New technology applied and tested487.3.4Continuous auditing and monitoring system48
The Potential of GPP for the Spreading of New/RecentlyDeveloped Environmental Technologies – Case Studies(Part 3)7.4The drivers responsible for this new Eco-Solution497.5The tendering process507.5.1Developing the green procurement criteria517.5.2The green procurement criteria517.5.3Awarding the contract537.5.4Contract management547.6Results of the tendering process and key factors that triggered themarket for the Eco-Technology547.7Barriers and 578Case study 5: Sustainable Procurement of Low EmissionBuses for Göteborg, SWEDEN608.1Background information618.2Information on the product618.3The new Eco-Technologies618.4The drivers responsible for procurement of the buses618.5The tendering process628.5.1Developing the green procurement criteria628.5.2The green procurement criteria638.5.3Contract management648.6Results of the tendering process and key factors that triggered themarket for the Eco-Technology648.7Barriers and difficulties658.8Lessons ources699.1Sources case study 1699.2Sources Case study 2699.3Sources Case study 3699.4Sources case study 470III
Costs and Benefits ofGreen Public Procurement in Europe(Final Report)9.5Sources case study 57010Appendix 1: Questionnaires for the Sustainable Procurementof Public Railcars with the Eco-Technology ‘particle filters’ forthe Taunusbahn, Case Study7110.1Questionnaire purchaser7110.2Questionnaire supplier7611Appendix 2: Questionnaires responses for SustainableProcurement of Bus Shelters in Barcelona, Case Study8111.1Questionnaire purchaser8111.2Questionnaire supplier8711.3Bus shelter9112Appendix 3: Questionnaires for the “The better floorlamps” ofthe City of Zurich, SWITZERLAND9212.1Questionnaire purchaser9212.2Questionnaire supplier9613Appendix 4: Questionnaires for the Sustainable Procurementof the Public Lighting Service of the City of Lille, Case Study10013.1Questionnaire purchaser10013.2Questionnaire supplier10414Appendix 5: Questionnaires for the Sustainable Procurementof Low Emission Buses for Göteborg, SWEDEN10914.1Questionnaire purchaser10915Summary of all case studies118IV
The Potential of GPP for the Spreading of New/RecentlyDeveloped Environmental Technologies – Case Studies(Part 3)FiguresFigure 1Photo Alstom/ B. Rosenthal6Figure 2Technical scheme of the engine particle filter (left); the mounted particle filter(right) (Graphic/Photo: MTU/Alstom/B. Rosenthal)8Figure 3Source: JCDecaux (3D Prototype)17Figure 4Cleaning system20Figure 5The graphic shows the little impact on the environment caused with the newsystem. The last two columns show how the new system consumes just halfthe amount of water, and consumes 80% less energy than the old cleaningsystem.22Figure 6Photo: Regent Beleuchtungskoerper AG30Figure 7MINERGIE Conforming Floorlamp38Figure 8Photo Jean-Marc Charles43Figure 9Virtuous Circle for the management of public lighting systems47Figure 10ETDE’s virtues circle model for Lille’s public lighting service47Figure 11Photos: Vasttraffik/Ingemar Carlson60Table 1Minimum green requirements10Table 2Selection criteria10Table 3Selection criteria23Table 4Standard versus MINERGIE floorlamps33Table 5Tendering procedure for floorlamps34Table 6Requirement for electrical output – as included in the tendering document36Table 7Lille’s ‘green’ lighting service46Table 8Key stages Lille’s tendering procedure50Table 9Green criteria used for the award phase52TablesV
Costs and Benefits ofGreen Public Procurement in Europe(Final Report)AbbreviationsADEMEAgence de l'Environnement et de la Maîtrise de l'EnergieCRTContinuously Regenerating TechnologyCNGCompressed Natural GasCRTContinuously Regenerating TechnologyEDFElectricité de FranceEMSEnvironmental Management SystemFahmaFahrzeugmanagement Region Frankfurt RheinMain GmbHGPPGreen Public ProcurementHLBHLB Bahnen GmbH (railway company)I DInvestigation and DevelopmentLCALife Cycle AnalysisLcALifecycle AssessmentLPGLiquefied Petroleum GasMDT Micro Downlight Technology MTUEngine producer MTUMUPIMobilier Urbain pour Publicité et InformationOPIOptical Point of InformationPIUUrban Information PanelPMParticulate mattersPpmparts per millionR&DResearch and DevelopmentRMVRhein-Main Transport NetworkSPPSustainable Public ProcurementGPPGreen Public ProcurementRES-EElectricity from Renewable Energy SourcesSEPISociété Européenne de Promotion et d’InvestissementsSEVSociété d’Electricité VendevilleSMDRSociété matériaux de démolition et de recyclageVI
The Potential of GPP for the Spreading of New/RecentlyDeveloped Environmental Technologies – Case Studies(Part 3)1IntroductionThe objective of this task was to build a body of qualitative and quantitative evidence toshow how tender documents have been established in such a way as to trigger the offer ofproducts based on a new or recently developed eco-technology. This report describes indetail at least 5 procurement procedures including the methodology and different theoreticaland practical steps undertaken by a procuring authority.The case studies1) Rhein-Main Transport Network, GERMANY – ‘particle filters’ for train2) Barcelona, SPAIN – bus shelters3) Zurich, SWITZERLAND – floorlamps4) Lille, FRANCE – lighting system5) Göteborg, SWEDEN – busesThere is strong evidence that green public procurement (GPP) can have an impact on themarket, and in particular on the design and production of new ‘eco-technologies’ or better‘eco-solutions’. However, in light of the difficulty in identifying suitable good practiceexamples, it has to be pointed out that a single public authority may be rarely in the positionto claim that its tender was the sole cause for triggering the offer on the market.2Selection of good practice examplesFollowing an extensive period of literature review, internet research and contacting keyorganisations, several potential good practice cases were identified across Europe thateventually led to the selection of five best practice examples. With the exception of fahma, a100% associated company of the regional Rhein-Main Transport Network (see ‘Taunusbahn’case), all contracting parties were relatively major cities with experience with GPP. Keyselection criteria included the existence of a green tender that had a market impact on newor recently developed ‘eco-technology’. Furthermore, the examples were chosen on thebasis of the following criteria:§Legality of the tender that was used;§Relevance to the EU;§Likely ability to source data and information, and the consequent scope and quality ofevidence that can be gathered;§Extent of environmental and economic impacts; and§Replicability in other purchasing organisations.In order to identify five good practice examples more than 80 suitable authorities, relevantassociations, private companies and other experts have been directly contacted by ICLEI.1
Costs and Benefits ofGreen Public Procurement in Europe(Final Report)33.1MethodologyLiterature reviewThe literature was undertaken to analyse the available evidence for tender documents totrigger the offer of products based on a new or recently developed eco-technology.The following documents were identified:§OECD review of the environmental performance of public procurement (2003).§The Green Alliance study on sustainable procurement for DEFRA (2005). The GreenAlliance report cites good examples of initiatives in Denmark as well as the UK.§The results of the Downstream Impacts of Sustainable Public Procurement projectundertaken by ERM with ICLEI for DEFRA (2006).§Cost Benefit Analysis of Sustainable Public Procurement, a research report completedfor the Department for Environment, Food and Rural Affairs by SQW Ltd.§Driving innovation through public procurement, February 2007, Policy Briefing, Nesta§Guide On Dealing with Innovative Solutions in Public Procurement - 10 elements ofgood practice, PRO INNO Europe.To assist in the search for examples a message was sent to ICLEI’s Buy-It-Green Network(BIG-Net), which contains over 200 sustainable procurement professionals and ICLEI’sCities for Climate Protection (CCP) mailing list which contains over 225 participants.3.2Selecting examplesBased on the research, a list and short summary of examples gathered was sent to the ECto decide with the project team which 5 examples would be most suitable to carry out furtherresearch. The selection of examples chosen was based on:§Legality of the tender that was used;§Relevance to the EU;§Likely ability to source data and information, and the consequent scope and quality ofevidence that can be gathered;§Extent of environmental and economic impacts; and§Replicability in other purchasing organisations.Following the selection procedure, research was undertaken to identify how, why and whatwas undertaken to trigger the offer of products based on a new or recently developed eco-2
The Potential of GPP for the Spreading of New/RecentlyDeveloped Environmental Technologies – Case Studies(Part 3)technology. Parts of the tender were translated into English and analysed to extract theimportant information.3.3Design of the questionnaireThe main instrument for the research was a questionnaire for both the public procurers andthe suppliers. They were asked to provide information on:Public authority:§§§Background information-Total procurement budget / green procurement budget-Further experience with GPPInformation on the product-Quantity of products purchased-Availability on the market-Comparative figures between ‘standard’ and ‘green’ product (incl. LCC)Drivers responsible for procurement-§§Main reasons, including political support, policy, specific targets and / orimplementation strategyTendering process-Developing the green procurement criteria (internal and external involvement)-The green procurement criteria (from selection to specification; verification)-Assessing the tender (number of bidders; timetable of tendering process)-Contract managementPotential of triggering the market-Impact on the market; supply chain;-Cost analysis§Barriers and difficulties§Lessons learnedPrivate supplier:§§Background information-Sales percentage-GPP experience with GPPInformation on the product-Cost analysis ‘standard’ versus ‘green’ (LCC)3
Costs and Benefits ofGreen Public Procurement in Europe(Final Report)§-Sub-suppliers involved-Availability on the marketDrivers responsible for procurement-§Tendering process-§Main reasons, including policy, specific targetsCompliance with criteriaPotential of triggering the market-Impact on market; market supply, other sectors-Duration and sustainability of changes-Impact throughout the supply chain-Impact on other sectors (sub-suppliers)-Impact§Eco-Technology / Eco-solution used§Barriers and difficultiesAdditionally, the respondents were asked to provide tender and contract documents as wellas other relevant information on the product concerned. The questionnaire has beendesigned professionally using a word formulary that could be filled in electronically. Fourlanguage versions of the questionnaire (English, German, French, and Catalan) wereavailable.3.4Follow up interviewsAdditional to the questionnaire methodology proposed to the EC, ICLEI undertook follow upinterviews with both the purchaser and suppliers. The reason for this was that, due to thelengthy selection process to identify suitable good practice examples, short timescales weregiven to the respondents to reply, and most importantly to obtain more detailed information.All interviews were undertaken in the native language (Swedish, German, French, andCatalan) to ensure that accurate information was obtained.A strong asset for handling the survey was the already established contacts to different localand regional authorities, in particular with the cities of Zurich, Barcelona and Lille that are allpart of ICLEI’s Procura Campaign on sustainable procurement in Europe1. Despite thelimited timeframe, the respondents were keen to get involved in the project.14See online at: www.procuraplus.org
The Potential of GPP for the Spreading of New/RecentlyDeveloped Environmental Technologies – Case Studies(Part 3)The dates the interviews took place were:Case study 1:Taunusbahn - GermanyCase study 2:Barcelona, SpainCase study 3:Zurich, SwitzerlandCase study 4:Lille, FranceCase study 5:Göteborg, Sweden3.5Purchaser interviewSupplier interview21 May 2007Joachim Michels & Gerolf Wogatzki31 May 2007Adolf Creus & Helena Barracó25 May 2007Stefan Hösli30 May 2007Richard Jullian, Danielle Poliautre,Eric Decaillon10 January 2006 and 24 May 2007Lennart Löfberg12 January 2006Pierre Modini4 June 2007Wolfgang Späth & Björn Vitt31 May 2007Luís Sánchez Olavarría25 May 2007Markus Binda & Markus Simon30 May 2007Christophe Montelimard20 January 2006Peter DanielssonThe Case studiesThe following 5 case studies describe in detail the methodology and different stepsundertaken by the procuring authority where tender documents had an impact on the marketor developed an eco-solution. The case studies describe the process from the start of theprocedure such as the initial policy and idea right through to the development of the criteriaand the call for tender as well as the results.The case studies present the following:§§§§§§§§§§§§§Background information on the organisationInformation on the productWhat was the new Eco-TechnologyThe drivers responsible for procurementThe tendering processDevelopment of the green procurement criteriaThe green procurement criteriaContract managementResults of the tendering process and the key factors that triggered the market for theEco-Technology including impacts on the supply chain, impacts on market supply andimpacts on the wider market demandBarriers and difficultiesLessons learnedOutlookContacts5
Costs and Benefits ofGreen Public Procurement in Europe(Final Report)4Case study 1: Sustainable Procurement of Public Railcars with theEco-Technology ‘particle filters’ for the Taunusbahn, GERMANYFigure 1Photo Alstom/ B. RosenthalPrepared by ICLEI – Local Governments for SustainabilityWith support from:Joachim Michels, Gerolf Wogatzki – fahma Fahrzeugmanagement GmbH, Sabine Groß,Wolfgang Späth, Björn Vitt, Rdiger Wendt – Alstom LHB GmbH, Mr. Käsberger –Hug Engineering AG6
The Potential of GPP for the Spreading of New/RecentlyDeveloped Environmental Technologies – Case Studies(Part 3)4.1Background informationThe Rhein-Main Transport Network (RMV) covers 14 000 km², serving a population of over 5Million people. The Taunusbahn is a line that is part of the RMV, operated by the HLBBahnen GmbH (HLB) railway company supplying regional transport links from Frankfurtmain station to cities and communities in the higher Taunus Mountains such as Königstein,Bad Soden and Bad Homburg.In the last 20 years the passengers per working day on these lines increased by 625%. Inorder to meet the needs of the passengers, the capacities and the quality of existing serviceswere improved. Therefore, the ‘Fahrzeugmanagement Region Frankfurt RheinMain GmbH(fahma)’, a 100% associated company with limited liability of the RMV, purchased newrailcars and provided them to the HLB.In 2004 fahma published a European tender for the production and delivery of ten two-partrailcars.2 All railcars have been in operation on the lines since December 2006.fahma is responsible for the finance, the procurement and the hosting of vehicles for theregional rail transport and the supply of these to railway companies. Since 2003 fahmapurchased and tendered for vehicles and services for the ‘Odenwaldbahn’ and ‘Taunusbahn’with an overall budget of 112 Million Euro. Over 30% of the procurement activities have gonebeyond the legal minimum requirements for environmental criteria, especially focussing onreducing emissions by applying EU stage IIIa and EU stage IIIb emission standards earlierthan required.3The winning bidder for the ten railcars was Alstom LHB GmbH (Alstom)4, offering vehicles ofthe type CORADIA LINT 41 / H that are equipped with two powerpack engines provided bythe company MTU of each 335 kW and particle filters provided by the company HugEngineering.2The tender is published under the identification number 2004/S 240-206797 – Public announcement for theaward of contract.3Rail Traction Engine standards adopted by the European Parliament on 21 April 2004 (Directive2004/26/EC) for engines from 130 kW to 560 kW used for the propulsion of railroad locomotives and railcarsneed to fulfil the following limits: from 1 January 2007 stage IIIa (CO 3,5 g/kW
Green Public Procurement in Europe (Final Report) II 5.5 The tendering process 21 5.5.1 Developing the green procurement criteria 21 5.5.2 The green procurement criteria 21 5.5.3 Assessing the tender 23 5.6 Results of the tendering process and key factors that triggered the market for the Eco-technology 24 5.7 Barriers and difficulties 26
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