Public Procurement For A Circular Economy

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PUBLIC PROCUREMENTFOR A CIRCULAR ECONOMYGood practice and guidance1Environment

GETTING IN TOUCH WITH THE EUIn personAll over the European Union there arehundreds of Europe Direct Information!CLRPCQ ȩ 7MSȩ A?Lȩ ȏLBȩ RFCȩ ?BBPCQQȩ MDȩ RFCȩcentre nearest you at: http://europa.eu/contactOn the phone or by e-mailEurope Direct is a service that answersyour questions about the European Union.You can contact this service by freephone:00 800 6 7 8 9 10 11 (certain operators maycharge for these calls), at the followingstandard number: 32 22999696 or byelectronic mail via: http://europa.eu/contactNeither the European Commission nor anyperson acting on behalf of the Commissionis responsible for the use that might bemade of the following information. European Union, [2017]Reuse is authorised provided the source isacknowledged.The reuse policy of European Commission documentsis regulated by Decision 2011/833/EU (OJ L 330,14.12.2011, p. 39).For any use or reproduction of photos or other materialthat is not under the EU copyright, permission must besought directly from the copyright holders.ShutterstockThis brochure was part of Contract NoENV.B.1/SER/2016/0049betweentheEuropean Commission and ARCTIK SPRLEnvironmental Communications. It wasauthored by ICLEI - Local Governments forSustainability.2

CONTENTSIntroduction4VVVPublic procurement within a circular economy:VVVCircular public procurementVVVThe policy context for a circular economy45Circular procurement in practiceVVVModels of circular procurementVVVOrganisational policy for circular procurementVVVStrategic thinkingVVVMarket engagementVVVCircular procurement requirementsVVVEvaluationVVVIn-use phase and contract management666813141617Resources and initiatives183

ShutterstockINTRODUCTIONAs the world population increases and economies rely progressively more on outsideresources to meet their demand for energy, water and food among others, communities MSPACQȩ?LBȩ?AAMKKMB?RCȩU?QRCȩ?LBȩCKGQQGMLQ ȩWithin the current linear production and consumption economic model, only a small shareof waste produced is reused, recycled or traded as secondary materials. The vast JQ ȩEMCQȩRMȩJ?LBȏJJȩMPȩGQȩGLAGLCP?RCB1 ȩȩ'LȩJGEFRȩMDȩȏLGRCȩPCQMSPACȩ ȐMUQ ȩ CAMLMKGCQȩ UGJJȩ LMȩ JMLECPȩ @Cȩ ?@JCȩ RMȩ PCJWȩ MLȩ RFCQCȩ JGLC?Pȩ NPMBSARGMLȩ ?LBȩconsumption models. A circular economy is an alternative to this model. It aims to keepproducts and materials in the value chain for a longer period and to recover raw RFCGPȩLCVRȩSQC ȩPpublic law, purchase works, goods or services fromcompanies.2UBLIC PROCUREMENTWITHIN A CIRCULAR ECONOMY:CIRCULAR PUBLIC PROCUREMENT%PCCLȩ NS@JGAȩ NPMASPCKCLRȩ %. ȩ GQȩ BCȏLCBȩ @Wȩthe EU as “a process whereby public authoritiesseek to procure goods, services and works with areduced environmental impact throughout theirlife cycle when compared to goods, services andPublic procurement refers to the process by whichpublic authorities, such as government departments,regional and local authorities or bodies governed by1. Waste potential! Towards circular economy in cities, 16th European Forum on Eco-innovation (2014). Available ovation2014/1st forum/pdf/ecoap-16th-report.pdf2. Further information on public procurement available at: http://ec.europa.eu/growth/index en3. Further information available at: ndex en.htm4. Criteria developed to facilitate inclusion of green requirements in public tender documents. Available at:http://ec.europa.eu/environment/gpp/eu gpp criteria en.htm4

keep resources in the economy and retain thevalue of these resources, which will contributetowards delivery of a sustainable, low carbon,PCQMSPACȩ CȑAGCLRȩ ?LBȩ AMKNCRGRGTCȩ CAMLMKW ȩ 2FGQȩplan recognises public procurement as a key driverin the transition towards the circular economy,and it sets out several actions which the EuropeanCommission will take to facilitate the integration ofcircular economy principles in GPP. These includeemphasising circular economy aspects in new orupdated sets of EU GPP Criteria4, supporting ahigher uptake of GPP among European public bodies,and leading by example in its own procurement andin EU funding.works with the same primary function that wouldotherwise be procured” (COM (2008) pg. 400 “Publicprocurement for a better environment”). To procurein an environmentally-friendly way involves lookingbeyond short-term needs and considering thelonger-term impacts of each purchase. This includesquestioning whether a purchase should be made atall.Circular public procurement is an approach togreening procurement which recognises the rolethat public authorities can play in supporting thetransition towards a circular economy. CircularNPMASPCKCLRȩ A?Lȩ @Cȩ BCȏLCBȩ ?Qȩ RFCȩ NPMACQQȩ @Wȩwhich public authorities purchase works, goods orservices that seek to contribute to closed energyand material loops within supply chains, whilstminimising, and in the best case avoiding, negativeenvironmental impacts and waste creation acrosstheir whole life-cycle.TCircular public procurement also has a role to playin achieving the Sustainable Development Goals,BCȏLCBȩ @Wȩ RFCȩ 3LGRCBȩ ,?RGMLQȩ ȩ ECLB?ȩ DMPȩSustainable Development. In particular, Goal 12 Responsible Consumption and Production - includes?ȩ QNCAGȏAȩ R?PECRȩ MLȩ NPMKMRGLEȩ NS@JGAȩ NPMASPCKCLRȩpractices that are sustainable, in accordance withnational policies and priorities.HE POLICY CONTEXTFOR A CIRCULARECONOMYIn addition, several countries, regions, and citieshave been developing their own circular economyQRP?RCEGCQ by these as an essential tool for encouraging thetransition to a circular economy.The EU Action Plan for the Circular Economy(2015)3 has established a concrete and ambitiousprogramme of action which will help to ‘close theloop’ of product lifecycles. It proposes actions toBENEFITSOF CIRCULARPROCUREMENT“In a circular economy,carbon dioxide emissionswould halve by 2030 andresource consumption bycars, construction materials,real estate land, syntheticfertilizer, pesticides, wateruse, fuels and non-renewableelectricity could drop by 32%by 2030 and 53% by 2050,compared with today”.5A circular economy will retainmore high value materialsin the economy, increase theresilience of companies andeconomies to external shocks,incentivise innovation andsupport local labour markets.At a global scale, it has anestimated potential to add 1trillion to the global economyby 2025 and create Public procurement can playa key role in transitioning toa circular economy. Including‘circular principles’ intoprocurement practices canhelp public sector buyers takea more holistic approach toQSQR?GL?@GJGRWȩ ȩDPMKȩRFCȩȏPQRȩstages of a procurement tothe end of product life - whilealso achieving potentialsavings.5. From Rhetoric to Reality: The Circular Economy Index of Dutch Businesses (2016). Available at:ȩȩȩȩFRRNQ KTMLCBCPJ?LB LJ QGRCQ BCD?SJR ȏJCQ KCBG? !GPASJ?PϤ #AMLMKWϤ 'LBCVϤ NBD6. Towards the Circular Economy: Accelerating the scale-up across global supply chains (2014). Available at:http://www3.weforum.org/docs/WEF ENV TowardsCircularEconomy Report 2014.pdf5

CIRCULAR PROCUREMENTIN PRACTICEWhen applying circular procurement in an organisation, there are a number of considerationsto make. This section provides an overview of the practical approaches that can help toembed circularity into procurement processes.Msystem is a printing contract using a pay-per-copymodel, in which the supplier provides all equipment,repairs, replacements and training rather thansimply selling copy supplies.ODELSOF CIRCULARPROCUREMENTThere are three types or ‘levels’ of models forGKNJCKCLRGLEȩ AGPASJ?Pȩ NPMASPCKCLR ȩ 2FCȩ ȏPQRȩ GQȩ ?Rȩthe ‘system level’, which concerns the contractualmethods that the purchasing organisation can useto ensure circularity. This ranges from suppliertake-back agreements, where the supplier returnsthe product at the end of its life in order to re-use,remanufacture or recycle it, to product servicesystems, where the contract provides both servicesand products. An example of a product serviceThe ‘supplier level’ model describes how supplierscan build circularity into their own systems andprocesses, in order to ensure the products CLRȩAPGRCPG? ȩ‘Product level’ is related to this, but is focused solelyon the products that suppliers to public authoritiesmay themselves procure further down the supplychain. It is important when undertaking circularprocurement that both the supplier systems CPCB ȩȩCIRCULAR PROCUREMENT MODELS1. System level2. Supplier Level3. ?IC QGELȩRMȩBGQ?QQCK@JW̵ȩ ȩ!MMNCP?RGMLȩUGRFȩMRFCPvvlorganisations on sharingvvland ȩ0CLR JC?QC̵ȩ1SNNJGCPȩR?IC @?AIȩvvlsystems including reuse,vvlrecycling, refurbishmentvvland remanufacturing̵ȩ#VRCPL?JȩPCSQC ȩQ?JCȩMDȩvvlproducts̵ȩ'LRCPL?JȩPCSQCȩvvlof AGCLAWȩ?LBvvlTotal Cost of Ownership̵ȩ0CAWAJCBȩK?RCPG?JQ(Source: SPP Regions Best Practice Report)Oexisting GPP or sustainable public procurement 1. �CLQSPGLEȩit is visible as a priority. It is important that suchNMJGAGCQȩBCȏLC RGANISATIONALPOLICY FOR CIRCULARPROCUREMENTCreating a circular procurement policy orincorporating circular economy principles into̵ What circular procurement means within thecontext of your organisation6

̵ What products, services or departments it applies toThere are opportunities to incorporate circularprinciples into the vast majority of procurementrelated work however, it may be helpful toGLRPMBSACȩ RFCKȩ EP?BS?JJWȩ ?Rȩ ȏPQR ȩ 2FGQȩ A?Lȩ NPMTGBCȩan opportunity to test approaches and provide anexample to other departments, making a full roll-out?Rȩ?ȩJ?RCPȩQR?ECȩC?QGCP ȩ'RȩA?Lȩ?JQMȩ@CȩKMPCȩCȎCARGTCȩto focus initial resources on ‘low hanging fruit’.̵ What targets, priorities and timeframes are inplace, and how these are monitored̵ What other activities, such as training, support, andcommunication strategies, are or will be put in place̵ Who is responsible for implementing the policyPiloting circularprocurement in theNetherlandsAs part of Nantes’ Responsible PurchasingPromotion Scheme (RPPS), the metropolitancouncil created 11 ‘Action Sheets’ forProcurement, including one on the CircularEconomy. This presents a clear and simplebreak-down of the policy areas which thecircular economy contributes to and what hasbeen achieved to date. It also provides thestrategic direction and operational targets forincorporating circular economy into procurement,and sets performance targets to be achievedby 2020. For example, by meeting operationaltargets supporting demonstration projects,optimising collection of small equipmentand biowaste, and incorporating life-cycleassessments into procurement, Nantes aimsto contribute to environmental targets at thenational and local government level.7In 2013, the Dutch Government establishedthe Circular Procurement Green Deal toaccelerate the transition to a circulareconomy. This programme brought together45 public and private parties, and taskedeach of them with carrying out two circularprocurement initiatives in order to increaseexperience, share insights, and create a poolof good practice. Over three years, 80 circularprocurement pilots were conducted and theirlessons shared. The success of this programmeresulted in the Dutch Government placingspecial emphasis on circular procurement andthe consideration of life-cycle costs in its 2016Roadmap to a Circular Economy. Moreover,it included an aim to raise the proportion ofcircular procurement to 10% by 2020.8ShutterstockIntegrating circulareconomy into procurementpolicy in Nantes, France7. More information available at:http://ec.europa.eu/environment/gpp/pdf/news alert/Issue74 Case Study 148 Nantes.pdf8. More information available at:ȩȩȩȩFRRN UUU QANAJC?PGLEFMSQC MPE QGRCQ BCD?SJR ȏJCQ CLE EPCCL BC?J AGPASJ?P NPMASPCKCLR K?E?XGLC NBD7

Saccess necessary, or can ownership be shared?’TRATEGICTHINKINGElements of procurement practices that require GPASJ?PȩKMBCJQȩand practices include:-LCȩ MDȩ RFCȩ ȏPQRȩ NP?ARGA?Jȩ QRCNQȩ RMU?PBQȩ AGPASJ?Pȩprocurement is to consider strategically how it canbe integrated into existing procurement practices andsystems.̵ Considering a service instead of buying a product̵ Focus on product design, its use phase and end-oflife (using buy-sell back, buy-resell and Product ServiceSystems)Consider which are the critical points within a typicalprocurement process and what kind of circularprocurement principles and practices make mostsense. What role do procurement practitioners GLȐSCLACȩBMCQȩthe public authority have on bidders? What is the ȩQNCAGȏA?RGMLQ ȩ̵ Engaging with suppliers and the wider market toidentify circular solutions-ȓCLȩ UF?Rȩ GQȩ LCCBCBȩ GQȩ LMRȩ ?ȩ QNCAGȏAȩ NPMBSAR ȩ @SRȩthe function it provides. Product service systemsallow suppliers to pool products to satisfy morecustomer needs with fewer units, thereby reducingthe environmental impacts of production. They canGLACLRGTGQCȩQSNNJGCPQȩRMȩGLAPC?QCȩCȑAGCLAW ȩGLȩMPBCPȩRMȩreduce operating costs. And they can incentivise usersto decrease usage, in order to save costs.9Rethink needȩ JMEGA?Jȩ ȏPQRȩ QRCNȩ GLȩ @CAMKGLEȩ KMPCȩ AGPASJ?Pȩ GQȩidentifying needs. This includes asking: ‘what is actuallyneeded?’, ‘does this require a purchase of a product, orcan it be provided as a service?’, ‘is sole ownership orReplacing vehicle fleets with a car sharing servicein Bremen, Germany'Lȩ ȩ?ȓCPȩ?LȩGLGRG?JȩNGJMRȩNCPGMB ȩ PCKCL QȩSenate Department for Environment,Construction and Transport managed to reduceits CO2 emissions from business-related travelwhile also lowering costs by replacing its MA?Jȩcar-sharing service. The Department previouslyMULCBȩ MPȩJC?QCB ȩ?ȩȐCCRȩMDȩ ȩA?PQ ȩ@SRȩRFCȩShutterstockutilisation rate was low, with most cars usedless than three hours a day. By switching to alocal car-sharing service with an online bookingQWQRCK ȩ �AGCLRȩȐCCRȩMDȩTCFGAJCQ ȩGLAJSBGLEȩCJCARPGAȩvehicles, and saves on costs in terms of GKC 10 ȩ MTGLEȩ2MU?PBQȩ.CPDMPK?LAC ?QCBȩ1NCAGȏA?RGMLQȩGLȩ.S@JGAȩ.PMASPCKCLRȩ ''1" ȩ ȩ T?GJ?@JCȩ?R ȩȩȩȩȩȩȩFRRNQ UUU GGQB MPE QGRCQ BCD?SJR ȏJCQ NS@JGA?RGMLQ QNCAQ NS@JGA NPMASPCKCLR NBD ȩ MPCȩGLDMPK?RGMLȩ?T?GJ?@JCȩ?R ȩFRRN UUU AJC?L ȐCCRQ CS ȏJC?BKGL ȏJCQ BMASKCLRQ .S@JGA?RGMLQ A?QC QRSBGCQ ȩȩClean Fleets case study - Bremen Car-Sharing integration.pdf11. More information available at:http://ec.europa.eu/environment/gpp/pdf/news alert/Issue69 Case Study 139 Scotland.pdf8

its transportation lead to pollution? Does it use a highamount of energy or water when in use, and can this@CȩKMPCȩCȑAGCLR Dȩ GRQȩ JGDC ȩ !?Lȩ GRQȩ BCQGELȩ @Cȩ GLȐSCLACBȩ RMȩ PCBSACȩ GRQȩsustainability impacts? Is there potential to support abroader circular economy ecosystem?Exploring optionsIf it is decided that a purchase is necessary, consideringthe life-cycle impacts of a particular product can helpyou to identify where its environmental impacts canbe improved via procurement. For example, is it madefrom an unsustainable resource? Does its production orPrioritising circular actions through Life-Cycle Mappingin ScotlandMNNMPRSLGRGCQ ȩ Qȩ?ȩPCQSJR A?RGMLQȩMLȩCLCPEWȩCȑAGCLAW ȩNPMBSARȩJGDC AWAJC ȩK?L?ECKCLRȩMDȩBCJGTCPWȩȐCCR ȩGLLMT?RGTCȩN?AI?EGLE ȩ?LBȩend-of-life management, with a particularemphasis on repair, refurbishment and re-useof devices.11Yannis PapanastasopoulosIn 2016, Scottish Procurement establishednew framework agreements for the supplyof ICT devices. Before releasing the tender, itconducted market engagement, and completeda Life-Cycle Impact Mapping exercise toidentify areas to focus on with regards toenvironmental and socio-economic risks and9

ShuterstockCircular procurement �RMȩK?ICȩQSQR?GL?@GJGRWȩimprovements have been decided, and organisationalA?N?AGRWȩ F?Qȩ @CCLȩ AMLȏPKCB ȩ GRȩ GQȩ LCACQQ?PWȩ RMȩdecide how this improvement will be made. A usefulway to prioritise potential actions is by means ofthe ‘Procurement Hierarchy’, which is based on theEuropean Waste Hierarchy: reduce, reuse, recycle andrecover.ȩ ȏPQRȩ QRCNȩ RMȩ AGPASJ?Pȩ CAMLMKGCQȩ GQȩ RMȩ PCBSACȩ UF?Rȩyou purchase. This can be done by assessing if youreally need to procure something at all, or if a solutioncan be found that does not require the acquisition ofnew products or materials. Reductions can also bemade through smarter approaches to contracts, suchas reducing the packaging of products delivered.Bringing circular concepts intoschool catering in Turin, ItalyRethinking printing needsin Zurich, SwitzerlandIn 2013, the City of Turin introduced a numberof measures to their school catering contractto enhance its sustainability, which �?NNJG?LACQȩand low environmental impact transport, as ?QRC ȩfor example by using tap water instead of bottledU?RCP cts where packaging is unavoidable. In?BBGRGML ȩAMLRP?ARMPQȩUCPCȩPCOSGPCBȩRMȩQFGȓȩfrom using plastic to reusable dishes. This onerequirement alone resulted in a reduction of 157tonnes/year of plastic waste.12In 2012, the City of Zurich decided to switchfrom buying (or leasing) multifunctional devicesto procuring an optimised Output ManagementService. This means that the city no longer hasto invest in hardware, and instead only pays perpage printed. As a result the city has drasticallyreduced its costs as well as the amount ofprinted materials produced. An energy savingof 34% has been achieved and the number ofprinted pages has been reduced by 30 milliona year.1312. More information available at:http://ec.europa.eu/environment/gpp/pdf/news alert/Issue47 Case Study100 Turin.pdf13. More information available at:http://ec.europa.eu/environment/gpp/pdf/news alert/Issue53 Case Study108 zurich output management.pdf10

Reusewill happen. This is becoming common in contractsfor ICT equipment, where desktop computers MLQȩ?ȓCPȩthe public authority has upgraded.Increasingly products are being designed for reuse.When designing a procurement procedure, this issomething that can be considered for the end-of-lifeof the product. Including supplier take-back systemsin contracts are one way of ensuring that reuseClosed loop town hallconstruction in a Dutch cityExtending the lifespan of workwear in Herning, DenmarkThe City of Brummen (in the Netherlands)had outgrown its existing town hall, and knewit required more room for the next 20 years,at least. However, its capacity needs beyondthis time were uncertain. As such, instead oftaking a traditional approach to building worksprocurement, the city decided to adopt a moreȐCVG@JC ȩAGPASJ?Pȩ?NNPM?AFȩUFGAFȩUMSJBȩQCCȩthem ‘lease’ a new building under a 20-yearservice contract. The building was designed ina way which allowed it to be disassembled andcomponents returned to suppliers, includingstructural beams, cladding, and partitions andso on.14In 2013, Herning Municipality sought toprocure new uniforms for its technicaloperations department, with the aim �use. To do so, it developed Cȩclauses related to maintenance, repair andrecycling. By leasing uniforms through aservice model, and including reuse andrecycling contract provisions, it was possibleto extend the lifespan of the uniforms, savingan estimated 6,700 and 1,011 tonnes ofCO2 emissions over four years.15Remanufacture of office furnishings in Walesas possible. The winning consortium, whichincluded social enterprises, supplied over 2,500items. Of these items, only 6% of them werenew, and the rest were remanufactured orPCDSP@GQFCB ȩUGRFȩ?ȩQGELGȏA?LRȩQF?PCȩF?TGLEȩbeen reused from PHW’s existing stock. Thecircular approach diverted 41 tonnes of wasteDPMKȩJ?LBȏJJȩ ȩUGRFȩ?ȩ!-2 saving of 134 tonnes- whilst creating permanent jobs for severaldisabled and long-term unemployed people.16When Public Health Wales (PHW) movedMȑACQȩGLȩ ȩGRȩBCAGBCBȩRMȩNPMASPCȩ?LȩMȑACȩdesign and furniture supply contract whichwould encourage as much reuse of existingMȑACȩCOSGNKCLR ȩDSPLGRSPCȩ?LBȩȐMMPGLEȩ?Qȩpossible, as well as supplying remanufacturedgoods from other sources. A supplier ‘openB?W ȩAMKKSLGA?RCBȩRFCȩICWȩQNCAGȏA?RGMLQȩof designing for a collaborative workspaceenvironment and reusing as much furniture14. Circular Economy: Getting the circulation oging (Kiser, 2016). Available /full/531443a.html?foxtrotcallback true15. More information available at:http://ec.europa.eu/environment/gpp/pdf/news alert/Issue65 Case Study 131 Herning.pdf16. More information available at:ȩȩȩȩȩȩFRRN UUU UP?NAWKPS MPE SI QGRCQ ȏJCQ UP?N .S@JGAϤ &C?JRFϤ 5?JCQϤ 1SQR?GL?@JCϤ 5MPINJ?ACϤ NBD11

RecycleIf a product cannot be reused then designing forrecycling is the next alternative in making it circular.This means ensuring that the product Wȩ?LBȩCȎCARGTCJWȩrecycled into a new product. Alternatively, or inaddition to the previous point, the product couldbe made from recycled content and thus furtherAMLRPG@SRCȩRMȩPCQMSPACȩCȑAGCLAW ȩRecycling concrete in building construction in BerlinIn 2013, the City-State of Berlin launcheda pilot project with the aim of encouraginggreater reuse of recycled concrete inbuilding construction. A total volumeof around 5,400m3ȩMDȩACPRGȏCBȩ AGPASJ?Pȩeconomy’ recycled concrete was used in theconstruction of a slurry wall and building shellof the new life science laboratory building atthe Humboldt University. In comparison withconcrete made from primary aggregates, therecycled concrete alternative saved 880m2of virgin gravel, 66% of the energy requiredfor production and transport, and 7% of theassociated CO2 emissions.17RecoverIn a circular economy, waste is recovered and used for?ȩBGȎCPCLRȩNSPNMQC ȩ2FGQȩA?LȩGLAJSBCȩAMLTCPRGLEȩU?QRCȩcooking oil into biodiesel, or composting food waste.Procuring authorities can both help to design ?ȩGLȩRCLBCPQ ȩand also procure the recovered products.Creating circular loops through biogas buseswere also included to incentivise lasting andreliable performance. As well as replacing280,000 litres of diesel every year, thisprocurement has created a ‘circular loop’ forthe by-products of local waste, and supportsinfrastructure development in making biogasavailable for a further 1,000 cars.18HananelIn 2014, the City of Vaasa (in Finland) setMSRȩRMȩNPMASPCȩ?ȩȐCCRȩMDȩ ȩ@SQCQ ȩUFGAFȩcould run fully on biogas recovered fromorganic waste and waste-water sludge atlocal treatment plants. Contract performanceAJ?SQCQ ȩUFGAFȩQNCAGȏCBȩ?ȩPC@?RCȩDMPȩRFCȩsupplier if annual consumption was moreCȑAGCLRȩRF?LȩCQRGK?RCQ ȩMPȩ?ȩPCDSLBȩGDȩJCQQ ȩ ȩ MPCȩGLDMPK?RGMLȩ?T?GJ?@JCȩ?R ȩFRRNQ UUU SKUCJR@SLBCQ?KR BC RFCKCL UGPRQAF?ȓ IMLQSK SKUCJRDPCSLBȩȩȩȩȩȩJGAFC @CQAF?ȎSLE ESRC NP?VGQ@CGQNGCJC EC@?CSBCLCS@?S @CPJGL CGLQ?RX TML PCAWAJGLE @CRML GK FMAF@?Sȩ GLȩ%CPK?L 18. Circular Public Procurement in the Nordic Countries (Nordic Council of Ministers, 2017). Available 1092366/FULLTEXT01.pdf12

M!GPASJ?Pȩ NPMASPCKCLRȩ MȓCLȩ PCOSGPCQȩ ?ȩ QFGȓȩ DPMKȩRCAFLGA?Jȩ QNCAGȏA?RGMLQȩ @CGLEȩ QCRȩ QMJCJWȩ @Wȩ RFCȩNPMASPCP ȩ RMȩ ?ȩ NPMACQQȩ UFCPCȩ QNCAGȏA?RGMLQȩ ?PCȩ QCRȩfollowing exchanges between potential suppliers andprocurers. Such an approach provides an opportunityto communicate needs, gather information on goodsand services available, and test the viability ofpossible award criteria. On a wider scale, engagingwith suppliers can help coordinate ‘circular activities’across relevant sectors.ARKETENGAGEMENTThe circular economy is a relatively young concept. It istherefore all the more important that procurers get toknow the market (products, suppliers, manufacturers,service providers, etc.) to help them develop a greaterunderstanding of what is already available and whatis possible. Beyond this, the goal to encourage �@SQGLCQQȩmodels depends on longer term collaboration.If a certain product or service is not currently?T?GJ?@JCȩ MLȩ RFCȩ K?PICRȩ GLȩ ?ȩ U?Wȩ UFGAFȩ DSJȏJQȩprinciples of the circular economy, the contractingauthority could establish an ‘innovation partnership’.These partnerships provide a framework for researchand development, piloting and subsequent purchaseof a new product, service or work.20Market engagement19 allows for the exploration andpromotion of new business concepts. Dialogue withsuppliers can identify the potential and feasibilityof new models of provision, such as product-servicesystems, leasing options, buy-per-use, shared use, orbuying and selling back.Engaging the marketfor furniture in Wageningen,the NetherlandsFinding high-value reuseopportunities in HelsinkiIn 2016, Helsinki Region EnvironmentalServices Authority (HSY) embarked on QȩRMȩtest and evaluate new methods of treatingand using digested sewage sludge from awaste treatment centre. The intention wasto encourage nutrient and material recyclingover energy recovery, in line with theEuropean Waste Hierarchy. Pilot approachesare ideal for supporting the creation ofinnovative solutions. During 2017 to 2018,HSY will study further the best methodDPMKȩRFCȩT?PGMSQȩNGJMRQ �?QQCQQKCLR ȩRFCȩBCȏLGRCȩprocurement will take place in 2019-2020.22When refurbishing its city hall, the City ofWageningen decided it would purchase MȎCPȩby using the principles of circular economy.To gain an understanding of the market, itconducted several pre-procurement marketconsultation activities, and sent out a requestfor information to potential suppliers. It alsoused an electronic procurement system whichfacilitated interaction between suppliersand the procurement team during the wholeprocurement process. As a result of thefeedback received, the products were split �RCLBCPȩwere launched. Multiple bids were receivedbased on prices which were not higher thanthose for conventional furniture.21 GMLȩUGRFȩQSNNJGCPQȩGLȩorder to get advice, which may be used in the preparation of the procedure.See Articles 40 and 41 of Directive 2014/24/EU for further information.20. See Article 31 of Directive 2014/24/EU for further information.21. More information available at: http://ec.europa.eu/environment/gpp/pdf/news alert/Issue69 Case Study 138Wageningen.pdf22. Circular Public Procurement in the Nordic Countries (Nordic Council of Ministers, 2017).Available at: 2366/FULLTEXT01.pdf13

CCȎCARGTCȩ QMJSRGML ȩ PCQSJRGLEȩ GLȩ @MRFȩ PCBSACBȩ PCQMSPACȩuse and costs. However, sometimes it is DȩACPR?GLȩEM?JQȩ?PCȩdesired, such as requiring the inclusion of recycledmaterial in production.IRCULARPROCUREMENTREQUIREMENTS0MB@FȎ@ QFLKP KA T OA @OFQBOF It is not always possible to engage in resource-intensivenew or innovative tendering procedures. In these cases,?JPC?BWȩ BCȏLCBȩ AGPASJ?Pȩ APGRCPG?ȩ @CAMKCȩ N?PRGASJ?PJWȩuseful. As of October 2017, the European Commissionhas created GPP criteria for more than 20 productgroups, of which the recently adopted criteria, includingthose for buildings, computers, textiles and furniture,have a reinforced focus on circularity aspects. For eachcriteria set, there are core criteria (these are suitablefor use by any contracting authority for addressingkey environmental impacts) and comprehensivecriteria (targeted at purchasing the best environmentalproducts available on the market).5FCLȩ BCQGELGLEȩ RCLBCPȩ QNCAGȏA?RGMLQ ȩ GBCLRGDWȩwhether a technical or a ‘functional’ approach wouldbe more appropriate for achieving a circular result.2CAFLGA?Jȩ QNCAGȏA?RGMLQȩ BCQAPG@Cȩ RFCȩ AMLRP?ARȩ RMȩthe market and provide measurable requirementsagainst which tenders can be evaluated, includingminimum compliance criteria. Functional (or ‘output/performance-based’) criteria will describe the desiredresult and which outputs (for example, in terms ofquality, quantity, and reliability) are ȩDSJȏJȩ?ȩACPR?GLȩLCCB NCAGȏAȩproduct as part of a routine process. Taking a step ȩUMSJBȩ?JJMUȩfor the adoption of a functional or performance-based?NNPM?AF GRWȩto be built into the procedure. The market is then givenmore freedom to innovate and provide the mostCircular economy actions supported by GPP criteria setscan include promoting product eco-design and designfor recyclability, extended producer responsibility,waste prevention, packaging material and sharing,collaborative economy, reuse, and refurbishment.23Using technicalspecifications and awardcriteria to require

CIRCULAR PROCUREMENT IN PRACTICE When applying circular procurement in an organisation, there are a number of considerations to make. This section provides an overview of the practical approaches that can help to embed circularity into procurement processes. M ODELS OF CIRCULAR PROCUREMENT There are three types or 'levels' of models for

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