EU GPP Helpdesk Webinar

Do we really need this? Demand management as the first step towards

green pubic procurement

1 July 2014, 14.30 – 16.00

Webpage: http:// ec.europa.eu/environment/gpp Helpdesk: gpp-helpdesk@iclei.org

• …to actually buy these products? – Consider leasing and sharing

• …to use this much fuel/ energy? – Consolidation centres, energy performance contracts & fuel reduction

• …to use these specifications? – Redefine specifications to suit need and demand

• …to use GPP criteria to reduce demand in the future? – Romote durability, reuse, recycling and future proofing

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Do we really need…

• Can products/ services/ equipment be shared? – Basque municipalities sharing high cost equipment

(The presentation will be available after the event)

– Croyden‘s pay-as-you-go car scheme , UK

• Procurement of products vs. services – Reduced environmental impacts toners, Tuscany region, Italy

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Do we really need… …to buy these products?

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Pay-as-you-go cars, Croyden

• Leasing/own cars caused parking and congestion problems

• Set up a pilot scheme in 2010 – pay-as-you-go fleet of 23 cars

• Annual travel costs were cut by 42% from £1.3m to £756,000.

• Employee business miles fell 42% from 1.1m to 642,000 miles.

• Employee car users have fallen by more than half, more now use public transport or walk to work.

• The pay-as-you-go approach has also proven to be more sustainable, with council employee's CO2 emissions footprint decreasing by more than 1/3.

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Pay-as-you-go cars, Croyden

• Tuscany Region requirements for remanufacture & commitment to buying at least 40% remanufactured toner cartridges

• The successful tenderer evaluate and reduce the environmental impact of the supply chain of the toners – considering total LCA assessment including the production, collection, transport and the management of the end of life components.

• During contract execution ensured that they upheld the environmental commitments made in the original bid and to monitor and make improvements throughout the contract.

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Supply of consumables for reduced environmental impact printing

• Consolidation centres and distribution hubs – London Borough of Camden, Waltham forest and Enfield

(Full presentation + background will be available after the event)

• Energy performance contracts – Renovation and maintenance of swimming pools, Rotterdam

• Fuel reduction targets – Low carbon waste collection services, Bristol, UK

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Do we really need…to use this much energy / fuel?

• London Consolidation Centre, UK – London Borough of Camden, Waltham forest and Enfield

(Full presentation + background will be available after the event)

• Stockholm Royal Docks Consolidation Centre, Sweden – Further information online

• Växjö distribution hub, Sweden – Interview with David Braic, Procurement Manager

– Information sheet on the distribution hub will be available after the event

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Consolidation centres & distribution hubs

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Consolidation Centre: Stockholm Royal Docks

• The logistics centre coordinates deliveries and materials to be used during construction

• It is responsible for recycling waste and scrap material.

• The logistics centre enables the reduction of greenhouse gas emissions, reduction of waste, improvement of the work environment and preservation resources.

• The logistics centre facilitates good planning, which also creates the preconditions to increase value-adding time and reduce construction costs.

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Consolidation Centre: Stockholm Royal Docks

2000 deliveries per week to 450 care homes, schools and nurseries have been cut to just 350

Saving fuel costs, local and GHG emissions and time

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Distribution Hub: Växjö, Sweden

• Energy Performance Contracting (EPC) is a partnership between a public authority and an energy service company (ESCO) aiming to reduce the cost of energy supply.

• At its own economic risk, the energy service provider as the ESCO makes all investments which are necessary and gives an energy saving guarantee.

• The partners then share the cost savings or the ESCO can be penalised for not meeting energy saving targets

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Energy Performance Contracting:

• The Senate of Berlin has successfully been implementing the EPC model since 1996.

• In more than 500 properties with more than 1,300 public buildings, including the town hall and Berlin's public swimming pools - existing energy saving potentials are tapped.

• Allows Berlin to achieve its climate-protection & energy-policy goals even with a tight budget, saving money at the same time.

• Both innovative and standardised technical solutions are implemented. The average energy saving in Berlin's 25 energy saving partnership pools is 26 percent.

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Energy Performance Contracting: Berlin Energy Agency

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Energy Performance Contracting: Rotterdam Swimming pools

An Energy Performance Contract (EPC) for the renovation and maintenance of 9 government-owned pools.

• Commitment to reduce 50% CO2 emissions by the year 2025

• Contract partners had to be able to guarantee performance and had to have experience delivering the City’s requirements.

• The award of the contract was based on the energy savings offered by the bidders and the maintenance costs.

• A competitive dialogue procedure was used with the winning bidder guaranteeing 34% energy savings.

• This was a success and it is now being rolled out across the City.

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Energy Performance Contracting: Rotterdam Swimming pools

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Fuel savings as part of the contract: Low carbon waste collection, Bristol

Contract includes the provision of vehicles, staff and depots for waste collection, road gritting and snow ploughing

• In 2011 a target for the whole city was adopted to reduce CO2e by 40% by 2020 – this was communicated in the spec

• A competitive dialogue process was carried out, ‘desired outcomes’ were used as opposed to technical specifications.

• These included reduce the ‘carbon footprint’ associated with the service in line with the agreed 2020 target for Bristol

• A target of 25% reductions was set, the winner offered 32%

• 12% decrease was acheived already in the first year

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Fuel savings as part of the contract: Low carbon waste collection, Bristol

• Redefining specifications to dramatically reduce costs and environmental performance, Catalan Government

• Food waste reduction in schools through monitoring, food redistribution & satisfaction surveys, Torino, Italy

• Print strategies in Gloucestershire, UK and Ghent, Belgium

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Do we really need…to use these specifications?

• The City of Torino prepares ~8,100,000 school meals a year.

• Waste management is also monitored – what is thrown away?

• Bread and fruit not used along with some cold and warm meals brought to social centres for disadvantaged people 2012-13: 11,000 kg bread and 9,000 kg of fruit redistributed

• A reduction of food waste has been due to adjustment of food quantities being served, review of the menu (City recognised that children are more likely to drink vegetable soup than eat vegetables), a customer satisfaction survey.

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Creating the right demand: Food waste reduction in Torino schools

• A shift from desk printers to MFDs

• Leased rather than bought – includes toners

• Standardisation of cartridges – more opportunities to request remanufactured/ low environmental impact/ closed loop systems

• Default settings (double sided, 2 pages, key codes)

• Energy efficiency, cost savings, paper waste reduction

• A shift in printing behaviour is also essential – education!

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Print strategies in Belgium & UK:

• Fuel Specifications requiring durable, reparable products – Social Housing Authority in Spain

• Innovative procurement to encourage the use of recyclates – 100% recycled roads in Hamburg

• Forward commitment procurement for lighting – National Health Service, UK

• EU GPP Criteria encouraging the use of recycled materials – The full list will be available after the webinar

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Do we need…to use GPP criteria to reduce demand in the future?

• The Basque Public Housing Agency (VISESA) has set certain requirements to make the most out of products

• Social housing is equipped with kitchen furniture and white goods.

• Visesa tenders for the supply of both elements for all the housing planned for 3 years

• In the tender they include environmental criteria to ensure durability, adaptability, reparability as well as other minimum environmental and safety criteria.

• Ghent,

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Furniture and white goods in Spain

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100% Recycled Roads in Hamburg

• The City’s final goal to go from using 50% Reclaimed Asphalt Pavement (RAP) to recycling of 100% of the original construction materials when refurbishing and resurfacing roads.

• The City allowed a group of private companies, who originally came up with the full recycling technology, to test its use on public roads owned by the City State. After the quality was then tested by Hamburg’s road construction authority, the City was reassured about the use of the 100% recycling process.

• Hamburg saved 30% compared to the costs for conventional road resurfacing, which in this case equates to ~ €20,000.

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100% Recycled Roads in Hamburg

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NHS Forward Commitment Procurement

• The UK National Health Service (NHS) needs to deliver carbon reductions, save money and at the same time deliver excellent services to patients.

• In an innovative project, The Rotherham NHS Foundation Trust has addressed these challenges by using Forward Commitment Procurement (FCP).

• The pro-innovation approach has brought to the market an integrated ‘future ward’ modular solution, with integrated bio-dynamic lighting, trunking and storage.

• Same cost but improved patient experience & lighting efficiency

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NHS Forward Commitment Procurement

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GPP criteria encouraging recycled materials

Copying and graphic paper

Cleaning products & services

Office IT equipment

Construction

Transport

Furniture

Food and Catering services

Textiles

Gardening products & services

Windows, Glazed Doors and

Skylights

Thermal insulation

Hard floor-coverings

Wall Panels

Combine Heat and Power CHP

Street lighting and traffic signals

Indoor lighting

• Demand can be challenged and redefined

• It can provide benefits in terms of efficiency, cost savings and environmental impacts

• Individual procurers have the opportunity to make the difference by „thinking outside the box“, but working with the market and internal departments makes it work better!

• It is the most important first step to consider before looking into potential GPP criteria

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Conclusions

• Any further questions on what you have heard about today?

• Any suggestions as to other forms of demand management not mentioned?

• Which are the product/ service categories that could make the most difference in terms of demand management?

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Discussion