Green Public Contracts

The European Commission, taking into account the fact that Public Procurement constitutes approximately 14% of GDP, i.e. approximately 1.8 trillion euros per year, of the Member States and within the framework of the action plan to strengthen a more efficient, in terms of the use of resources and friendlier to the environment, economic model of the Circular Economy, has established criteria which it proposes to the States Members to adopt, in order for Public Procurement to become "green" ( Green Public Procurement and the EU action plan for the Circular Economy - Study for the ENVI Committee – upd 2017), which are also now captured and analyzed in KYA 14900 (8/2/2021), Approval of an Action Plan for Green Public Procurement.

These criteria have as their goal the direction of Public Organizations towards the supply of environmentally friendly products and consequently the support of recycling operations, the production of products with a small environmental footprint and the more efficient use of resources and energy.

In complete contrast to the above, in Greece there are still cases in which the exclusion from tenders for the public supply of recycled materials, regardless of whether or not they meet the technical specifications required on a case-by-case basis.

General principles that should govern MFFs

As general principles in the adoption by the Single Independent Public Procurement Authority (EADISY), of the institution of Green Public Procurement, we believe that the following should be:

  1. Application of the principles of free competition and equal treatment of primary and recycled materials. This is implemented by:
  • Mandatory inclusion of a minimum percentage of recycled materials in Public Procurement based on specific specifications.
  • The mandatory supply of recycled materials should not result in a deliberate increase in their acquisition costs.
  1. It is imperative to include technical specifications that must be met, regardless of whether the materials are primary or recycled, so as not to degrade the quality of the materials to be supplied.

Government agencies involved:

  1. YPEN/EOAN – services involved in the process of producing recycled materials.
  2. Green Public Contracts Committee which has been established with YA 63955/239/13-6-2017 and which aims to draw up a National Action Plan for the promotion of Green Public Contracts, based on the provisions of EU legislation.
  3. Single Independent Public Procurement Authority (EADISY ), which is also the regulatory authority regarding the inclusion of the criteria proposed by the European Commission for Green Public Procurement.

National Action Plan

The general objectives of the Approved National Action Plan for the promotion of PDS are:

1) The establishment and implementation of an elementary level of adoption of green criteria in public procurement of products, services and projects.

2) The gradual increase in the supply of green products and the provision of green services during the next three years in defined sectors of goods, services and projects.

3) The wider integration of product life cycle costing into public procurement.

4) Dissemination of the environmental and economic benefit that PDSs bring.

5) The active participation of those involved, such as contracting authorities and economic operators, in the PDS process.

6) The monitoring of the achievement of the objectives and their updating for the optimal implementation of the Action Plan and its adaptation to the national, European and international data in this field.

Since the adoption of GSPs generally requires a gradual approach and the selection of a small number of product and service groups on which the GSPs will initially focus is the method proposed by the EU, fifteen product categories have been selected for this National Action Plan / services/ public works, eight of which are of binding application and an additional 7 at an optional level (of non-binding application):

Specifically, the following categories were selected with binding application :

  1. Photocopy and writing paper
  2. Computers and monitors
  3. Imaging equipment
  4. Interior lighting – LED lamps
  5. Air conditioning machines
  6. Lubricants (regenerated and biodegradable )
  7. Means of transport, namely vehicles and transport services
  8. Street lighting and traffic signals

The "lubricants" category includes the supply of lubricants derived from regenerated base oils, as well as biodegradable lubricants.

For the regenerated oils according to the EU criteria, the supply of these is foreseen at a minimum of 25%.

Lubricants derived from regenerated base oils must meet the same specifications as primary oils, as they are intended for the same uses as them. In accordance with the new National Waste Management Plan (PYS 39/31.8.2020 – Official Gazette 185 A') and the Approval of the Action Plan for Waste Management (KYA 14900, Official Gazette 466B 08.02.2021) with regard to waste (lubricants) of oils (AE) it follows that the goal of their regeneration set by the national legislation (PD 82/2004) has been achieved since 2015, while practically the goal set by the previous ECHR has also been achieved.The new ESDA sets as the goal of managing the oil flows the removal of all restrictions in order to further develop the market of regenerated oils.

In this context, it tentatively proposes measures and actions such as, among others: a) the encouragement of their use by public bodies (e.g. through tenders/procurement contracts based on specific specifications, b) the legislative regulation for the market promotion of regenerated basic mineral oils and c) establishing economic incentives for their supply/use.

The exclusion of regenerated oils from Public Procurement also contradicts the recently voted by the K.Y.A. parliament. 62952/5384/30.12.16 (Approval of the National Plan for the Management of Hazardous Waste) which states: "The use of lubricating oils resulting from treatment ( R 9) will be promoted, mainly by removing any obstacles that arise and act as an impediment to disposal them in the market.”

S HM . : KYA 62952 for the ESDEA was valid until 2020. Since then, the new ESDEA was issued, PYS 39/31.8.2020 – Official Gazette 185 A', which includes the promotion of regenerated oils and states:

"Encouragement of the use of regenerated mineral oils by Public bodies (e.g. through their procurement tenders/contracts based on specific specifications)" and also "Legislative regulation for the promotion of regenerated mineral oils in the market" which were implemented with the issuance of KYA 14900.

As far as biodegradable lubricants are concerned, for reasons of environmental protection, serving the public interest, the health and safety of the local population and for the application of the principles of sustainable development, companies that carry out projects (e.g. road projects, port, mining, etc.), underground and above ground excavations and other works in areas where they are under protection status (such as forest environment, biodiversity, wetlands, streams, coastal zones, etc.), to procure lubricants/greases with special biodegradation characteristics for machinery and equipment, so as not to cause an environmental burden in the event of its failure and leakage of these lubricants into the ground, the water table or another environmentally sensitive recipient, such as sea, river and lake.

The market size of the lubricating oils consumed by Public Organizations in Greece is estimated at 10,000 t per year. If we replace 25% of the above quantity, i.e. 2,500 t, with regenerated oils, the resulting benefits are:

  • Greenhouse Gas Reduction by: 12.6%
  • Saving of Mineral Resources by: 22.0 %

source : IFEU Life Cycle Analysis June 2017 .

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