Green procurement, the green push of reform

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Public spending on the purchase of goods and services (excluding utilities and defense) accounts for more than 14 percent of gross domestic product in the EU, involving more than 250,000 governments (source: Eurostat). The European directive on ‘Green Public Procurement‘ (GPP)-implemented in Italy by reforming the public procurement code-is a good example of an integrated environmental policy. (1) Next, an in-depth look at so-called ‘green procurement’.

Public procurement, the Minimum Environmental Criteria (CAM)

Public Administration-as a ‘consumer aggregate’ with considerable purchasing power and widespread distribution in the domestic market-can constitute an unparalleled critical mass. Choosing goods and services that ensure fair remuneration for workers, respect for ecosystems and rational use of natural resources can thus contribute significantly to reducing the environmental impact of business activities. Offering concrete incentives at the same time to the development of sustainable supply chains and technologies.

The directive on ‘GreenPublicProcurement’ (GPP), or green purchasing, lays the foundation for activating virtuous procurement paths in public procurement. Its implementation in Italy entails the obligation for PA to ensure compliance with the Minimum Environmental Criteria, so-called CAM, when choosing economic operators (Legislative Decree 50/16, Art. 34). Namely,

‘the “technical indications”, general or specific, of an environmental and ethical-social nature envisaged by the so-called PAN GPP, linked to the different phases of the tendering procedures (subject of the contract, technical specifications, environmental certifications and rewarding criteria of the most economically advantageous bidding mode, conditions of contract execution).’ CAMs thus represent ‘”basic” elements of qualification of environmentally preferable initiatives and the sum of the technical elements suitable for ensuring an adequate response from the supply market.’ (2)

Each commodity category (goods and services) is subject to specific reference CAMs. To which are added additional criteria, termed ‘rewarding’ because they favor companies that stand out for qualitative elements in addition to the required minimums. Sectors that account for a high share of public purchasing include food services and food supply, which, after energy and transportation, have the greatest impact on greenhouse gas emissions.

Mass catering and food supplies, such as CAM

In catering, the PA must base its choice of operator on the criterion of the most economically advantageous bid. In compliance with the relevant Minimum Environmental Criteria and ‘green economy‘ environmental regulations. Also considering the parameters of sustainability and ecological quality of products (Art. 144).

The overall quality of foodstuffs must be evaluated in both catering and public food supplies. With a focus on organic, typical and traditional, PDO and PGI products. As well as those that come from short supply chains andsocial farming operators. And to those coming from developing countries, when made with sustainable farming practices.

The technical specifications define key steps in the supply chain, including some hygiene requirements. Suppliers must submit periodic reports with data sheets and appropriate documents to attest to the characteristics of the food offered. They must also provide, to staff and consumers, adequate information on nutritional and environmental issues. And they are subject to a control system, which may consist of collecting and verifying written statements from their legal representatives and/or audit and certification schemes.

Analysis on CAM application levels in Italy

The Associazione Comuni Virtuosi presented its survey report on the procurement procedures adopted in 2017 by a representative sample of the variety of its members to the Chamber of Deputies on 12.2.19. (3) Well, 55 percent of the municipalities that participated in the survey (40 out of 102) do not apply CAM in any product category. Minimum Environmental Criteria are mentioned in only 21 percent of the calls, with office paper supply (60 percent) and catering (50 percent) dominating. And it is interesting to note that, in the sample examined, the inclusion of environmental criteria in contracted food services has a small impact (1.5 percent) on the economic resources used.

Legambiente and the Ecosystems Foundation in turn found that 29.38 percent of the 1,048 municipalities surveyed still do not apply CAM in any product category. Although this figure may be overstated due to a lack of responses to the ‘Comuni Ricicloni’ questionnaire. (4) The study, published in June 2018, ranks mass catering only fifth in the application of environmental criteria (15.9 percent), after waste management (27.5 percent), paper supply (24.4 percent), heating and lighting (18.5 percent), and cleaning management (18.4 percent).

Southern and Central regions, in Legambiente’s study, stand out favorably for having included CAM in the calls referring to at least one product category. This is true for 92 percent of southern municipalities and 83 percent of central municipalities, compared with the leaner northern 66 percent. Nonetheless, paradoxically, the southern regions at the top of the rankings in the adoption of measures on the generality of calls-Basilicata and Apulia-record their lowest rate of application in ‘food service. Sardinia, the first Italian region to adopt a regional action plan for green procurement, tops the list of virtuous regions with the adoption of CAM by all municipal administrations and the highest share of their referral in public catering (62.5 percent). (5)

Weaknesses and application obstacles

Canteens and foodstuffs are the public supply sectors subject to the fewest ‘Green Public Procurement‘ constraints. It is accepted, on the one hand, that the minimum criteria can be met by less than 50 percent of the total amount of products. Providing at the same time that the ‘most economically advantageous’ offer may coincide with the one that guarantees the distinctive characteristics of the foodstuffs (e.g., organic) for the entire supply. Individual administrations thus retain wide margins of arbitrariness, in an area that as noted has a far from negligible impact on the environment. Not forgetting, among other things, the issue of food waste.

The report of the Associazione Comuni Virtuosi then highlights, with a qualitative analysis, the real obstacle to be addressed. The human factor. In politics, still insensitive to issues crucial to our society, and in administration. Thus, the lack of management attention emerges, to the point that staff in half of the municipalities involved have never received training on these issues. Specific skills are lacking; staff do not know or even know how to apply the discipline. Although the public sector is called upon by law-as well as by ethics and common sense-to steer the market toward ecological and social sustainability.

Dario Dongo and Giulia Caddeo

Notes

(1) See dir. 2014/24/EU, d.lgs. 50/2016. See also European Commission, ‘
Green Public Procurement
‘ (GPP),
(2) See National Action Plan for the Environmental Sustainability of Consumption in the Public Administration Sector, so-called NAP GPP, paragraph 4.3
(3) Virtuous Municipalities Association Report,
(4) Legambiente Report
(5) Awarding green canteens Sardinia Region.

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Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.

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Graduated in law, master in Food, Law & Finance. You have explored the theme of green procurement and urban food policies in the International Cooperation and Peace sector of the City of Turin.