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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
I. Green Purchasing Policies
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 mainte-nance
- 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 estab-
lished by the MOE
4
Action Plans to Promote Purchase of Green Products (2011~2015)
Platform for public green procurement 65%→35%
Green product manufacturing
/distribution 20%→30%
10%→30% Nationwide
green consumption
5% Global
cooperation
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 (before→after
)
Green Purchasing Policies5
Action Plans to Promote Purchase of Green Products (2011~2015)
Green Purchasing Policies6
2010 2011 2013 2015
No. of EL Criteria 148 153 168 181
Green Consump-tion support cen-
ter- 2 16 30
Green store - 50 400 600
Green Credit Card - 200,000 2 mil. 5 mil.
GP market size KRW25 tri.
KRW26 tri.
KRW33 tri.
KRW40 tri.
Items
Number of Certified Products
Certification Authority
Website
GR ProductsEco-labeling
150 items including office equipment, construction ma-
terials
1,672 companies, 9,799 products (As of June. 2013)
MOE / KEITI
http://www.ecoi.go.kr
247 items including waste pa-per, glass in 16 categories
206 companies (As of June. 2013)
MKE /Technology Standard Inst’
http://www.gr.or.kr
Green Product under Article 2 of the Framework Act on Low Carbon, Green GrowthGreen
Product 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 of 「 Act on the Promotion of Industrial Technology Innovation 」
Green Purchasing Policies7
MOE : Overall Management
PPS : Procurement Support
KEITI : Policy Support
Public Org. : Pro-curement
Policy direction and supervision
Policy sug-gestion
Records of each organization’s procurement
Green prod-uct informa-tion
Guide-line
Green product in-formation and pro-curement support
Records and plans
Procure-ment records
Procurement request
GPP System
Green Purchasing Policies8
National Public Procurement Service operates the GePS
GePS provides detailed information on eco-products to the public or-
ganizations
GePS tracks the results of green procurement
Special Shop for
Eco-productsEco-Label prod-uct
Government e-Procurement Sys-tem
Green Purchasing Policies10
Item Features Green Prod-uct(A)
Non-Green Product
(B)Price Gap
(A-B)
Increase/Decrease rate(%)(A/B)
PC
Laptop
Copy Ma-chine
Toner Car-tridge
Paper
Desk
Toilet Paper
CPU, Memory, HDD,Monitor Excluded
CPU, Memory,HDD,
Definition, printing speed, gray scale
Printer model, print-ing volume
A4, Weight (g/m2), 1 box (2500 sheets)
Identical wood tex-ture,
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 Prod-uct
Green Purchasing Policies11
< Pertinent Institution for system submittal>
- Federal Govt. Institution : Ministry
- Autonomy : village, county & city office
- Education Office: school
- Others : each branch
Top Level(HQ. Main Office)
pertinent
Institution
perti-nent Institu-tion
pertinent
Institution
pertine
nt
Institution
Department submit
In excel file
Approve/sum up/submit
System registratio
n
system registratio
n
system registratio
n
system registratio
n
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 an-
nounced at the end of next year February
The data are registered in the consolidated information network of the gov-
ernment (www.greenproduct.go.kr)
Reports on Green Procurement
Green Purchasing Policies13
II. GPP Promotion Activities
Procurement records reflected in performance evalua-tion
100%
Local state-run companies
Evaluator :Ministry of Public Administration and Security Evaluation indicator : Observance of gov-ernment 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 compa-nies
Evaluator : Ministry of Strategy and Finance
Evaluation indicator : Observance of gov-ernment policy (score:5) Share out of total score : 0.3/100
Share of Green Products Effectiveness
GPP Promotion Activities14
Green Procurement Records via PPS
Organizations
Total amount
GP amount
GP ra-tio
GPP Promotion Activities15
Regular and random training sessions are held for people in charge of procure-
ment, 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 Ses-sion
GPP Promotion Activities
'05 '06 '07 '08 '09 '10 '11 '12 '13.6 -
2,000
4,000
6,000
8,000
10,000
12,000
0
10
20
30
40
50
60
70
3,030
5,125 5,985
6,061 6,860
8,816 9,591
8,295 8,476
20
2832
4448
65 64 64
48
16
Workshops are held for local governments and military per-
sonnel to showcase best practices in green procurement
- USD 5,000, USD 3,000 & overseas training are given
Awards to individuals, businesses, organizations that contrib-
ute to green procurement, development and dissemination of
green products
GPP Workshops & awards
GPP Promotion Activities17
Interviews of people in charge of green procurement at pub-
lic 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 Collec-tion
GPP Promotion Activities18
PPS Green Products Bidding Notice : construction ma-terials
Eco-labeled construction mate-rials
GPP Promotion Activities19
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 Institu-tions
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 Activities21
공공기관 녹색제품 구매실적Since 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 Activities22
For the last 8 years, public sector’s green procurement in 19
items resulted in 3.71 million tons of CO2 reduction and
14,335 new jobs
- As a result of public sector’s green procurement in 2012
CO2 Reduction= 491,000t, Economic Benefits= KRW 7.4 billion
Environmental/Economic Benefits from Green Pro-curement
2005 2006 2007 2008 2009 2010
1.6
4.8
7.59.1 9.4
8.1
108
316
495
601620
538
CO2 equivalent emis-
sion reduction (thou-
sand Tons)
Economic benefits (billion
KRW)
Job creation(capita)
2011
544
8.2
114
6,532
619
4,001
1,995
37996
36
677
7.4
491
2012
GPP Promotion Activities23
III. Future Plan
After a few years of rapid growth, Korean public sector’s
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 pro-
grams
Future Plans24
Thank You!
Mr. Moon, Sung-Sik [email protected]