<IGPN Sapporo Forum> 7 Feb. 2014

Korea Environmental Industry& Technology Institute

Overview

BackgroundI

Korea’s GPP PolicyII

International Initiatives on GPPIII

Way ForwardIV

2

I. Background

Agenda 21, UNCED, Rio The Future We Want, Rio+20, UNCED

Johannesburg Plan of Implementation (JPOI), Rio+10 WSSD

“The major cause of the continued deterioration of the global environment are the unsustainable patterns of consumption and production…”

1992 2002 2012

“SCP is one of the overarching objectives of, and essential requirements for SD” “Encourage and promote the development of a 10-year framework of programmes in support of regional and national initiatives to accelerate the shift towards SCP….”

2015

UN High-Level Political ForumSDGs (Sustainable Development Goals)

“We adopt the 10 year framework of programmes on SCP patterns…”

■ Milestones of SCP

- 3 -

Main Themes

Green economy

Institutional reform

Action in a number of areas

(water, ocean, land, agriculture, food and nutrition, SCP)

Sustainable development goals

Means of Implementation

Other areas such as the corporate sustainability reporting and beyond GDP

5 Main Tasks

Data, indicators & accounting for SDGs

The 10-year framework of programs on SCP

Access to environmental information

Regional cooperation, networking partnerships

Engagement with major groupsincluding business and civil society

■ Rio+20 Main outcomes

10

I. Background

GPP

I. Background

1992 Introduction of Korea Eco-Label

1994 Act on Development of Environmental Technology▶ Recommend the Green Public Procurement

2004 Act on Encouragement of the Purchase of Green Products▶ Mandate public entities to implement GPP

2005 Green Product E-Procurement System (NPS)▶ Interlink with Government Procurement System

2009 Green Consumption Week & Eco-Expo▶ Raising market recognition on green products

2011Green Credit Card Green Store Partnership ▶ Involving more stakeholder groups

II. GPP in Korea

Product groups

Number of Products

Competent Body

Website

Good Recycled MarkKorea Eco-Label

150 categories including officeequipment, construction materials, etc

1,672 companies, 9,799 products(As of June. 2013)

Ministry of Environment & KEITI

http://www.ecoi.go.kr

16 categories including waste paper, glass, etc

206 companies, 247 products(As of June. 2013)

Ministry of Trade, Industry and Energy

http://www.gr.or.kr

• 864 state agencies (30,000 subsidiary organization) are obliged by the Act to report Implementation Plan and Performance Report to MOE annually

• Green Products : Should meet the criteria set by the Korea Eco-Label or by the Good Recycled Mark, or meet other standards notified by MOE

Act on Encouragement of the Purchase of Green Products (2004)

II. GPP in Korea

Office Equipment

Office Supplies / Equipment

TV Air Conditioner

Video Projector

DVD Player Computer

Electric / Electronic

Goods

Toilet Paper Detergent Sanitizer Bin Bag Disposable Container

Consumablesetc.

Label Paper Document File

Printer Paper

Toner Cartridge

Stationery

II. GPP in Korea

Office desk Chair Cabinet Water tap Pipe

Block Paint Glue Window frame

Aggregate

Pencil Oil-based pen

Ballpoint pen Lab table School desk

Furniture, Equipment

Construction Material

Stationery, furniture

II. GPP in Korea

MOE Overall Management

NPSReceive order, purchase &

deliver Green Products

KEITIGPP Planning, Monitoring

& Evaluating

State AgenciesSet their GPP plan andOrder Green Products

Provide direction and supervision

Provide technical Assistance

Submit Implementation Plan and Records via KONEPS

Commission Procurement over certain thresholds

Execute GPPOver certain thresholds

Report the monitoring and evaluation results

Submit centralized GPP records via KONEPS

Provide green products information

II. GPP in Korea

• Korea’s public procurement is carried out by the central public procurement agency (National Procurement Service)

• Small scale procurement or special purchases which cannot be dealt with by PPS is carried out by individual agencies

Centralized E-Procurement System (KONEPS)

II. GPP in Korea

2. Indirect Purchase1. Direct Purchase

Need a certain item

Check if the item is subject to GPP

Check if there aregreen products available in the market

Purchase via PPSBuy a non-green product

Yes

YesNo

No

Contract/Bidding

Order

Check if there aregreen products available in the

market

Let the contractor use green materials

(Contract terms, specs. etc.)

Green Purchase Non-green purchase

NoYes

Yes

II. GPP in Korea

GPP records reflected in performance evaluation

Local Public Org.

• 39 local public corporations

• Evaluated by Ministry of Public Administration and Security

• Indicator : GPP ratio to total spending

• Share out of total score : 2 /100

Local Government

• 10 Provinces & 6 Metropolitan governments

• Evaluated by Ministry of Public Administration and Security

• Indicator : GPP ratio to total spending & annual GPP growth rate

• Share out of total score : 14.5/900

Public Organization

• 111 national public corporations & government affiliated agencies

• Evaluated by Ministry of Strategy and Finance

• Indicator : institutional arrangement to effectuate GPP(20%) + GPP ratio to total spending(80%)

• Share out of total score : 5/100

II. GPP in Korea

• Regular trainings are held for procurers at public institutions• 62,269 people have attended the session during the period between

2005 and 2013.

Green Procurement Training

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

0

10

20

30

40

50

60

70

-

2,000

4,000

6,000

8,000

10,000

12,000

'05 '06 '07 '08 '09 '10 '11 '12 '13.6

Red: Total number of trainings conducted, Green: Total number of Attendees

II. GPP in Korea

• Workshops for public organization and municipalities in order to raise awareness on GPP and provide technical assistance

• Awards to those who deliver outstanding performances (President, Prime Minister, Environmental Minster’s Awards)

GPP Workshops & Awards

II. GPP in Korea

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

15

II. GPP in Korea

Korea’s GPP recorded KRW 1,727 bn (170 million USD) in 2012 which hasincreased 6.8 times since 2004

Success FactorsSuccess Factors LimitationsLimitations

• Combined approach of GPP and Eco Labelling in place

• Monitoring system in connection with NPS E-procurement system

• Institutional arrangement among key stakeholders (e.g. Evaluation)

• Financial & reputational incentives

• Staff in charge of GPP in public agencies frequently changes

• Limited coverage of monitoring until recently (e.g. self procurement)

• Ineffective management of indirect procurement (e.g. construction)

• Limited coordination with other procurement regulations

▶ Stimulate public demands by diversifying product groups

▶ Coordinate with other existing social procurement standards

▶ Stimulate public demands by diversifying product groups

▶ Coordinate with other existing social procurement standards

II. GPP in Korea

17

II. GPP in Korea - Other Preferential Public Procurement

Female-Owned Business ProductsMinistry of Employment and Labor

Social Enterprise-Manufactured Products

Disabled-Manufactured Products Ministry of Health & Welfare

Organic Agricultural Products Ministry of Agriculture & Forestry

Man of Distinguished Service to R.O.K-Manufactured Products

Ministry of Patriots and Veterans Affairs

Different Ministries mandate State Agencies to preferentially purchasethe following products

Initiated by UNEP with support of Chinese MEP, KEITI, IGPN

2013~2015 with budget of 45 million USD

Key partners : Governments, Private Sector, NGOs, International and Regional Network(e.g. Switch Asia, APR on SCP, other donors)

Objective : Strengthen the capacities and improve the knowledge on GPP and EL in the ASEAN+3 region

18

A. Creating an ASEAN+3 network of GPP/EL experts and policy makersB. Development of case studies on GPP/EL implementationC. Sharing GPP/EL knowledge through capacity buildingD. Establishment of regional workgroups on GPP/EL

A. Creating an ASEAN+3 network of GPP/EL experts and policy makersB. Development of case studies on GPP/EL implementationC. Sharing GPP/EL knowledge through capacity buildingD. Establishment of regional workgroups on GPP/EL

III. International Cooperation

ASEAN +3 GPP/EL ProjectASEAN +3 GPP/EL Project

1914

Hosted 1st ASEAN+3 GPP/EL Project Meeting

30 Oct ~ 1 Nov, 2013, Seoul (in parallel with ECO EXPO KOREA 2013)

Consist of (a) ASEAN+3 GPP/EL Workshop & Capacity Building(b) Asia Carbon Footprint Network(c) Green Finance Seminar

III. International Cooperation

20

Launched the ASEAN+3 GPP/EL network of policy makers and experts

Identified stakeholder focal points in 10 countries and form a steering committee

Pilot test GPP/EL training toolkit developed by UNEP with a focus on Asian perspective

Main OutcomeMain Outcome

III. International Cooperation

Develop Case Studies on GPP/EL until 2015

Conduct GLL/EL Capacity Building Training

Yearly

Pilot Project in the region in line with SPPI WG

ASEAN+3 GPP/EL

Workshop(Beijing, Oct

2014)

Taiwan Thailand Japan Australia China New Zealand

Nordic Countries USA Canada Germany

’02. 4 ’02. 9 ’03. 12 ’04. 6 ’05. 3 ’06. 2 ’10. 9 ‘12. 6 ‘12. 6 ‘13. 10

III. International Cooperation

Ecolabeling HarmonizationEcolabeling Harmonization

Expanding Mutual Recognition Agreement

Developing Tripartite(China, Japan, Korea) Common Core Criteria

Technical Assistance for New Ecolabelling in ASEAN region

MRA Partners of Korea Ecolabelling program

10 YFP on SCP follow-ups

• Serve as 10YFP Board Member representing Asia (2013 Sep - 2014 Aug)

• Launch the 10YFP SPP Programme with UNEP (2014 April, New York, TBC)

Partner org : 19 governments, 3 local authorities, 11 int’l organizations, 23 NGOs, 2 Academia, etc

22

Work Areas Sub Workgroups

Build case for SPPand support

implementation

Propose a vision and defining SPP principles

Monitoring SPP implementation and assessing impacts

Addressing barriers to implementation and proposing innovative solutions

Strengthen stakeholdersinvolvement

Exploring views on SPP standards in collaboration with ecolabelling, supply chain management, etc Mapping out existing global/regional/national SPP related activities and resources

Cross CuttingActivities

Coordination of SPP implementation GroupBiennial SPP Report & ForumCommunication via 10YFP website, SCP Clearinghouse, etc

23

Objective : Promote SCP best practices and serve as a concrete implementing strategy of 10YFP in AP region

Partners : Government, Business, NGOs in AP region, International Organization, Regional Network

* SWITCH ASIA, APR on SCP, ASEAN Forum on SCP, IGPN, ICLEI, etc

Project Period : 2015-2020

Approaches

• High level policy dialogue on SCP in AP region• Sustainable business & consumer networking in the region• Knowledge sharing on specific SCP issues highlighted in the region• Building SCP best practices in the developing countries

ASIA SCP INITIATIVE (under development)

24

Set SCP goals and evaluate progress in the region

Encourage business & civil society involvement

Identify developing country interested topics

Secure financial sponsorship for in-situ projects

Create market/trade opportunities in a balanced way

Focused Consideration

Korea Environmental Industries

& Technology Institute

Korea Environmental Industries

& Technology Institute

Thank You !!!

Stanley SEOKDirectorSustainability Strategy OfficeKEITImozzi@keiti.re.krwww.keiti.re.kr