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Green Public Procurement in Korea Dec 17, 2013. Contents I. Korean Green Purchasing Policy II. GPP Promotion Activities III. Future Plans.

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Presentation on theme: "Green Public Procurement in Korea Dec 17, 2013. Contents I. Korean Green Purchasing Policy II. GPP Promotion Activities III. Future Plans."— Presentation transcript:

1 Green Public Procurement in Korea Dec 17, 2013

2 Contents I. Korean Green Purchasing Policy II. GPP Promotion Activities III. Future Plans

3 I. Green Purchasing Policies

4 Act to Promote the Purchase of Eco-friendly Products (2005) Green Purchasing Policies Since 2005, public institutions have purchased eco-products - Direct purchasing of eco-products - Eco-services : printing, cleaning service, building maintenance - Indirect purchasing : discretionary order on cleaning, building repairs Target Organizations : 864 government and public institutions (Total 28,700 institutions including affiliated organizations) Scope of Eco-Products : Eco-Label Products, Good Recycled mark products, Other eco-products satisfying criteria established by the MOE 4

5 Action Plans to Promote Purchase of Green Products (2011~2015) Action Plans to Promote Purchase of Green Products (2011~2015) Incentives for green consumption Local green consumption support centers Networks for green consumption promotion Correct information on green purchasing Global cooperation in ecolabeling Free trade for green products Environmental regulations Green product development and relevant system improvement Nationwide green distribution network Support for production/distribution/purchasing of green products System for mandatory procurement implementation A platform for green procurement system Green product info system Green construction materials portion (beforeafter ) portion (beforeafter ) Green Purchasing Policies 5

6 Action Plans to Promote Purchase of Green Products (2011~2015) Action Plans to Promote Purchase of Green Products (2011~2015) Green Purchasing Policies 6 2010201120132015 No. of EL Criteria148153168181 Green Consumption support center -21630 Green store-50400600 Green Credit Card-200,0002 mil.5 mil. GP market sizeKRW25 tri.KRW26 tri.KRW33 tri.KRW40 tri.

7 Items Number of Certified Products Certification Authority Website GR Products Eco-labeling 150 items including office equipment, construction materials 1,672 companies, 9,799 products (As of June. 2013) MOE / KEITI 247 items including waste paper, glass in 16 categories 206 companies (As of June. 2013) MKE /Technology Standard Inst Ecolabeled products and products of equivalent value under Article 17 of Support for Environmental Technology and Industry Act GR products and products of equivalent value that are designated by the Minister of Knowledge Economy under Article 33 of Act on the Promotion of Saving and Recycling of Resources and Article 15 ofAct on the Promotion of Industrial Technology Innovation Green Purchasing Policies 7

8 MOE : Overall Management PPS : Procurement Support KEITI : Policy Support Public Org. : Procurement Policy direction and supervision Policy suggestion Records of each organizations procurement Green product information Guideline Green product information and procurement support Records and plans Procurement records Procurement request GPP System GPP System Green Purchasing Policies 8

9 National Public Procurement Service operates the GePS GePS provides detailed information on eco-products to the public organizations GePS tracks the results of green procurement Special Shop for Eco-products Eco-Label product Government e-Procurement System Green Purchasing Policies 10

10 ItemFeatures Green Product (A) Non-Green Product (B) Price Gap (A-B) Increase/Decr ease rate(%) (A/B) PC Laptop Copy Machine Toner Cartridge Paper Desk Toilet Paper CPU, Memory, HDD, Monitor Excluded CPU, Memory, HDD, Definition, printing speed, gray scale Printer model, printing volume A4, Weight (g/m2), 1 box (2500 sheets) Identical wood texture, 1600×1200×720mm Jumbo roll, 300m, 16 rolls B4, Weight (g/m2), 1 box (2500 sheets) 997,000 1,426,400 3,168,000 24,750 15,400 238,580 33,800 24,500 980,000 1,430,000 3,251,800 36,000 20,000 236,842 34,400 38,000 17,000 3,600 83,800 11,250 4,600 1,738 600 13,500 1.73 0.25 2.58 31.25 23.00 0.73 1.74 35.53 Price: Green Product vs. Non-Green Product Green Purchasing Policies 11

11 - Federal Govt. Institution : Ministry - Autonomy : village, county & city office - Education Office: school - Others : each branch Top Level (HQ. Main Office) pertinen t Instituti on pertinent Institutio n pertinent Institution pertinen t Instituti on Department submit In excel file Approve/sum up/submit System registration system registration Announce final result system Establish procurement plan by the end of each January in accordance with the Guideline for Purchasing Eco-Friendly Products, and after its result is announced at the end of next year February The data are registered in the consolidated information network of the government ( Reports on Green Procurement Green Purchasing Policies 13

12 II. GPP Promotion Activities

13 Procurement records reflected in performance evaluation 100% Local state-run companies Evaluator :Ministry of Public Administration and Security Evaluation indicator : Observance of government policy (score:10) Share out of total score : 1.5/100 Local Gov. Evaluator :Ministry of Public Administration and Security Evaluation indicator : General environmental management (score:14.5) Share out of total score : 6.1/900 100% 80% 20% State-run companies Evaluator : Ministry of Strategy and Finance Evaluation indicator : Observance of government policy (score:5) Share out of total score : 0.3/100 Share of Green Products Effectiveness GPP Promotion Activities 14

14 Green Procurement Records via PPS Organizations Total amountGP amountGP ratio GPP Promotion Activities 15

15 Regular and random training sessions are held for people in charge of procurement, auditing and construction at public institutions. - 62,269 people have attended the session during the period between 2005 and 2013. - In conjunction with the Low Carbon Green Growth Expo, attendees get to see and use green products after the training. Green Procurement Training Session GPP Promotion Activities 16

16 Workshops are held for local governments and military personnel to showcase best practices in green procurement - USD 5,000, USD 3,000 & overseas training are given Awards to individuals, businesses, organizations that contribute to green procurement, development and dissemination of green products GPP Workshops & awards GPP Workshops & awards GPP Promotion Activities 17

17 Interviews of people in charge of green procurement at public institutions are released every month (28,700 interviews so far) Institutions share their cases via best practice collections that have been issued since 2006 Newsletter & Best Practice Collection GPP Promotion Activities 18

18 PPS Green Products Bidding Notice : construction materials Eco-labeled construction materials GPP Promotion Activities 19

19 Over 6.8-fold growth from KRW 255 bn before the law to KRW 1,727 bn in 2012 GPP accounts for 5 to 6.5 % over total purchases executed by PPS Records of Green Procurement at Public Institutions 255 2004 787 2005 861 2006 1,344 2007 1,584 2008 1,630 2009 1,641 2010 Unit: billion KRW 2011 1,645 Act to Promote the Purchase of Eco-friendly Products 1,727 2012 GPP Promotion Activities 21

20 Since the enactment of the act, the number of manufacturers and certified products have been on a rapid rise Competition leads to better quality and price Sales of ecolabeled products have reached USD 26.8 billion Relevant industries such as parts and materials are going green as well GPP Promotion Activities 22

21 Environmental/Economic Benefits from Green Procurement 2005 20062007200820092010 1.6 4.8 7.5 9.1 9.4 8.1 108 316 495 601 620 538 CO 2 equivalent emission reduction (thousand Tons) Economic benefits (billion KRW) Job creation(capita) 2011 544 8.2 114 6,532 619 4,001 1,995 379 96 36 677 7.4 491 2012 GPP Promotion Activities 23

22 III. Future Plan

23 After a few years of rapid growth, Korean public sectors green procurement has reached a stable stage Approx. USD 1.63 bn (10) USD 1.64 bn (11) USD 1.72 bn (12) Future Plans Expand the products groups covered by GPP among the items that are in high demand at public institutions Ensure public institutions use green construction materials when building new facilities or green building certification program Strengthen green procurement policies in the private sector and encourage green consumption among ordinary consumers Expand partnerships with UNEP : green purchasing Training programs Future Plans 24

24 Thank You! Mr. Moon, Sung-Sik

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