Chemical Leasing Toolkit

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Green Public Procurement

Public Procurement (PP) is the purchasing of goods and services by governments, agencies and official institutions according to specific guidelines. PP can comprise a large share of the gross domestic product (GDP) of a country or region (e.g. 19% of the EU GDP). Thus, it has a large influence on the demand for goods and services and can significantly contribute to more sustainable products and can act as a driver for innovation.

Green Public Procurement (GPP) considers the environmental and sustainability aspects of the products and services purchased, and explicitly demands sustainable solutions. As stated by the EU, GPP “can help stimulate a critical mass of demand for more sustainable goods and services which otherwise would be difficult to get onto the market.” (source[1]

Chemical Leasing and GPP have a natural synergy. The implementation of Chemical Leasing would help public authorities and entities to meet their sustainability targets and to conduct GPP. At the same time, the integration of Chemical Leasing into GPP would increase demand for the business model and would considerably support its dissemination in the chemical industry.

Examples[1]

Examples of institutions with GPP Examples of sectors influenced by GPP
Governments and government agencies Infrastructure and transport routes
Municipal institutions Construction sector
Hospitals Waste and wastewater treatment
Public water suppliers Energy

Challenges

The successful integration of Chemical Leasing into GPP will require a sufficient number of suppliers, as it entails competition among the suppliers and thus ensures their willingness to comply with the requirements and present innovative ideas. Having only a small number of suppliers could undermine the intention of the public procurers if the companies are not complying with the new guidelines.

Another challenge is to develop new ways to measure quality and safety criteria and prove they have been met, which will be needed if the procurement of goods is replaced by the procurement of an entire service.

Ways to overcome barriers

To address these challenges, public procurers need to be aware of Chemical Leasing and the advantages of the business model for their sector and task. Thus targeted information must be provided (see also awareness raising and information dissemination).

Also important in integrating innovative and sustainable concepts into PP is the development and implementation of pilot projects. Successful projects can be used to show the potential benefits to other sectors and may even lead to the automatic uptake by other institutions.

To make procurers more aware of Chemical Leasing and service-oriented concepts in general, the latter should be integrated into guidelines and handbooks on PP, such as the EC guidance “Buying Green!”. Chemical Leasing could be mentioned as a way to meet economic, environmental and safety targets.

 

 


[1] Source: McKinsey 2008: Potenziale der öffentlichen Beschaffung für ökologische Industriepolitik und Klimaschutz (Public procurement potential in the field of ecology, industrial sector policy, and climate protection)