Current GPP/SPP state of play and impact of international projects in India - Prasad Modak

Current GPP/SPP state of play and impact of international projects in

India

Prasad Modak Chairman, Green Purchasing Network India

Public procurement in India

• Large and growing component of public spending

• Massive infrastructure projects

• At state level, procurement is a mosaic – multiple systems running at the same time.

• No professional cadre – no specialized training

• Share of public procurement in GDP in India – 20%(?)

Public procurement, also called Government procurement or public tendering, is the procurement of goods and services on behalf of a public authority, such as a government agency.

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Even with an absence of coherent policy, GPP/SPP exists in India!

• Rule 137 of the GFRs articulates the fundamental principles of public purchasing that Government Ministries and Departments provide:

– Adequate information and announcement;

– Non-discriminatory practices to provide equality of opportunity, transparency in bidding, as well as in the evaluation process;

– Accountability; and

– Non-restrictive bidding conditions to unlock the particular market

• The businesses in India abide with the International /Agreements ratified and this reflects in the Products

• Non restrictive practices such as the ILO conventions are ratified by India and translated into the Indian Legislative system

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Policies Promoting GPP

• Encouraging hand spun and hand woven textiles (khadi) products

• Specialized system of reservations for handloom sectors

• For notified products, products from Small Scale Industries are preferred

• Protection is provided to the domestic industry in recognition of high costs, like input costs, interest rates, etc.

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• This is a reflection of the primary policy of the government to provide for financial and infrastructural support to the handloom and the small-scale sectors.

• Both these sectors, are rated highly in terms of social performance, since they employ a high percentage of labour and are arguably sustainable in terms of their energy usage.

• This kind of a reservation system therefore has a positive impact on sustainable procurement by the Indian government

Driving forces in augmenting the agenda of GPP in India

• Pollution Prevention / Cleaner Production Focus

– Policy framework has been developed to complement the legislative provisions

– National Conservation strategy and Policy Statement on Environment

– Product oriented regulations are in the horizon

– The Government has initiated efforts in identifying Green Product Manufacturers

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Driving forces in augmenting the agenda of GPP in India

• National Action Plan on Climate Change (NAPCC) has been notified

– Stress on demand-side management in the use of energy and natural resources in consumption sectors (Energy Efficiency)

– Emission reduction in the production sectors contingent on transfer of new technology and finance (Cleaner Technology)

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Driving forces in augmenting the agenda of GPP

• Energy Conservation

– Energy performance standards and labelling for equipment and appliances already is in place

– BEE is empowered to prohibit manufacture or sale or purchase or import of specified equipment or appliance unless such equipment or appliance conforms to energy consumption standards

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- Public procurement for designated products specify energy efficiency rating requirements

Progress of GPP / SPP in India

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2007

2008

2009

2012

PM’s Council on Climate Change

suggest GPP guidelines

Multi-stakeholder consultation on GPP

guidelines

MoEF establishes Committee on GPP

guidelines

Committee on GPP submits

recommendation to MoEF

International Influences in the Process

• Japanese model of GPP felt as the best fit

• EMC’s work with Gov of Mauritius – GPP system for 5 products

• Experiences from other countries also fed into the development of GPP guidelines in India – Led by CII

– European Union, China, Brazil, etc.

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GPP Product List Developed

• Paper

• Pharmaceuticals (basic drugs)

• Electrical Appliances (coolers/ generators/ water heaters)

• Water Coolers & Purifiers

• Public Works (cement/ bricks/ steel)

• IT equipment (computers and peripherals/ photocopier)

• Office Furniture

• Lighting

• Mobile Phone

• Criteria used for product selection

– Products which are low hanging fruits

– High purchase product categories within government procurement (both quantity and value)

– Products, where initiatives towards greening have already been undertaken

– Products, where technology is already established

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Product Criteria Paper Water Consumption benchmarks, ECF

Public Works Cement: Energy Consumption levels, particulate matter, CO2 emissions, blending of fly ash and blast furnace slag

Steel: Thermal energy consumption levels, dust emissions, CO2 emissions, water consumption, use of slag

Bricks: Fly ash content, perforation area, cleaner/ gaseous fuels

IT Equipment Environmental attributes around product categories, product packaging, end-of use services, supply chain responsibility and organisational performance

Mobile Phones Technical specifications around materials, plastic case parts, flame retardants, consumer information, power consumption for chargers, active efficiency

Electrical Appliances

Technical Specifications around various aspects such as energy efficiency, power consumption, disassembly, etc. 11

Product Criteria Water Coolers & Purifiers

Technical Specifications around various aspects such as energy efficiency, recyclability, disassembly, etc.

Lighting Technical Specifications around various aspects such as energy efficiency, packaging, hazardous substances, weight, recycling and disposal, lifetime reliability

Office Furniture Technical Specifications around various aspects such as hazardous substances, plastic parts, VOC limits, etc.

Pharmaceuticals (basic drugs)

Guidelines around calculation of yields, expiration dating, stability testing

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Facilitation by UNEP and GIZ

• Green Public Procurement for Indian Railways – Workshop and preparation of a Road Map.

• Forthcoming training activities for DGS&D (Directorate General of Supplies & Disposals)

• GPNI Involved

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Green Retail Project- Switch Asia

• Green Retail is a 4 year project (Feb 2013 – September 2016) supported by the European Union (EU) under the SWITCH Asia Programme.

• Targeted at the Indian Food & Beverage Retail sector in 4 major cities in India (Mumbai, Bangalore, National Capital Region Delhi Chennai).

• The project aims at facilitating the switch to resource efficient practices in retailers’ operations , greening the retail supply chain (focus on MSMEs), and contributing to the evolution of green consumers. The project will result in improved resource efficiency, waste and water management, energy efficiency, cleaner production and sustainable consumption.

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Green Product Makers Coalition GPNI Providing assistance What is Green?

Low Carbon Goods and Services – Analytical Work

• Planning Commission and Prime Ministers Office

• CII – Sectoral study

• CII and Boston Consulting – India Green Manufacturing

• Interest from Government of UK

• How Green are Low Carbon Goods?

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GPNI’s Common Core Criteria(CCC)

Research

Review of sustainability criteria of over 150 multi-attribute ecolabels

Analysis

Analytical distillation of criteria

Harmonization of Criteria

Outcome

Proposition of 8 Common Core Criteria

Use of CCC to develop product-specific criteria

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Common Core Criteria -

Advantages

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Comprehensiveness Completeness Consistent Communication

Compliance to env. Regulations and

Standards.

Resource Conservation and

Efficiency

Exclusions and Preferences

Biodegradability & Recyclability

Conservation of Biodiversity

Presence of an EMS

Social Inclusion

Reporting & Responsible Disclosure

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Exclusions and

Preferences

Resource Conservation and Efficient

Use

Pre-cautionary

Leanness

Cost

Quality

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How Resource Optimization (Leanness) causes reduction of costs – A case from Japan

Source: www.globalecolabelling.net 22

Developed under funding from the Ministry of Environment (MOE), Japan

Global Enviro-Legal Portal (GELP)

Supported by Japan Environment Association (JEA) and the International Green Purchasing Network (IGPN)

Implemented by the Green Purchasing Network India

What is GELP? Distilled, Organized , Abstracted and

Searchable Database

Self-Assessment Feature with Automatic Report Generation

Expert Support with Option to Support Product-Specific Q&A

SEARCH

VIEW

RATE COMPA

RE

MY ACCOUNT

MY FAVORITES

NOTES

SUPPLIER

RECENT UPDATES

ASK AN EXPERT

SUPPLIER

EXPERT

FAQ

Q A

Rating

SUPPLIER

ADVICE ON COMPLIANCE

ISSUES

SELF-ASSESSMENT FORMS

Provide support to SMEs to meet national as well as market based requirements on environmental compliance

Provide support to Multinational Corporates operating global supply chains in achieving environmental compliance related to their products

Establish a dynamic platform for updation, distillation and distribution of content on enviro-legal areas

Promote knowledge networking and expert dialog to create a partnership between various regional and international “players” involved in improving environmental performance of supply-chains

What can GELP do?

Portal ready and deployed

Tested for site integrity

Contents developed and uploaded for Pilot testing

GELP: Way forward

Updation of content, operationalization and site maintenance The content on the portal needs to be updated

continuously. Also a pool of Experts need to be drawn for

operationalizing Module B & C. The software part of the portal need to kept

functional at all times

Pilot Testing: Focus on a couple of important sectors such as

Textile and Electrical and Electronics

GELP: Way forward Workshop on building partnerships amongst GPNs: GPNs as national focal points for GELP GPNs as local Experts GPNs as national communicators on GELP GPNs as local content creator GPNs run country level pilots

Communication and marketing Kit Manual for User, Manual for Expert, Manual for

Admin, Announcement and Brochures, Advertisements in the form of Posters and Billboards as well as Tools for Direct Marketing such as Emails, Presentations and Planning for Launch Workshops

GELP: Way forward

Develop a business model for GELP Business model to make GELP self sustainable over a period of time. Plan should also help in building partnerships between GPNs

Plugging of the payment gateways E-commerce solution design Payment methods Security Revenue sharing mechanism

Image for representation purpose only

GELP: Way forward

Creating required legal documentation Privacy Policy Terms and Conditions Contract Agreements Terms of Reference Copyright Issues

Conclusions

• While India has no ‘defined’ GPP process, the various tenets of GPP gets reflected in the existing Public Procurement processes

• The Public Procurement Governance exists with high level of implementation & transparency

• Equality and diversity in supply chains is addressed in the Public Procurement processes

• International developments has impacted the GPP development process in many ways

• Carbon considerations coming in through introduction of Energy Efficiency measures – expanding to Low Carbon Goods – National priority

• A lot needs to be done – right from Policy, Legislation, Standards to awareness creation

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THANK YOU