«GREEN» PUBLIC PROCUREMENT: POTENTIAL BENEFITS AND CHALLENGES FOR UKRAINE

Authors

DOI:

https://doi.org/10.15407/econlaw.2018.03.003

Keywords:

public procurement, «green» public procurement, state environmental policy, «horizontal» objectives, sustainable development

Abstract

The present article deals with the main challenges concerning the implementation of «green» public procurement in Uk raine. The paper gives special attention to the conflict of the «traditional» public procurement goal with the «horizontal» objective for environmental protection. The author comes to the conclusion that these goals have an equal status. The «horizontal» objective for environmental protection is legitimate and not necessarily subservient to commercial aspects. Taking into consideration Sustainable development goals it is appropriate to integrate «green» component as an integral part of the value for money, i.e. obtaining the best result possible from the money spent. The paper dwells on one of the potential challenges for Ukraine as higher purchasing prices of «green» public procurement. The author gives a review of some research papers which are dedicated to potential costs of «green» procurement and concludes that higher costs are in many cases compensated by lower operating costs. Performance-based specifications and life-cycle costing approach are the potential tools for making rational decisions in «green» public procurement. The article involves a profound analysis of the EU Court of Justice cases on potential discrimination in «green» procurement and pays attention to the doctrine of «excluding buying decisions». The author suggests that given the environmental integration principle under the art. 11 of the TFEU «green» public procurement could have a special status. The article analyses potential limitations for the contracting authority in determining the award criteria, mainly «the link to the subject-matter» requirement. The author gives special consideration to the potential benefits of «green» procurement and elaborates recommendations on its implementation in Ukraine. The refusal to develop «green» public procurement in Ukraine could lead to a loss of its position in the international public procurement market, in particular the procurement market of the EU and WTO member states that are actively implementing the policy of introducing and implementing «green» procurement.

References

Public procurement as a tool for promoting more sustainable consumption and production patterns: Sustainable development. United Nations. Department of Economic and Social Affairs. 2008. URL: https://sustainabledevelopment.un.org/content/documents/no5.pdf

Buying green! (3rd edition). European Commission. 2011. URL: http://ec.europa.eu/environment/gpp/pdf/Buying-GreenHandbook-3rd-Edition.pdf

GPP National Action Plans. URL: http://ec.europa.eu/environment/gpp/action_plan_en.htm

Harmonisation of Public Procurement System in Ukraine with EU Standards 2016. Report on Green Procurement Manual. URL: http://eupublicprocurement.org.ua/wp-content/uploads/2016/09/REPORT-ON-GREEN_PROCUREMENT_MANUAL_ENG.pdf

Kunzlik P. From suspect practice to market-based instrument: policy alignment and the evolution of EU law’s approach to “green” public procurement. Public Procurement Law Review. 2013. No. 3. P. 97—115.

Aldenius M., Khan J. Strategic use of green procurement in the bus sector: challenges and opportunities. Journal of Clea ner Production. 2017. No. 164. P. 250—257. https://doi.org/10.1016/j.jclepro.2017.06.196

Chernykhivska A. “Zeleni” derzhavni zakupivli yak stratehichnyi instrument sotsialno-ekonomichnoho rozvytku. Naukovyi visnyk Khersonskoho derzhavnoho universytetu. 2014. Iss. 8. Ch. 2. P. 161—164 [in Ukrainian].

Konashchuk N. Vykorystannia “zelenykh” kryteriiv pid chas zdiisnennia publichnykh zakupivel. Naukovi zapysky Natsionalnoho universytetu “Ostrozka akademiia”, seriia “Ekonomika”. 2016. No. 3(31). P. 133—136 [in Ukrainian].

Turchenko O. Vprovadzhennia stiikykh (“zelenykh”) zakupivel: zarubizhnyi dosvid. Pravnychyi chasopys Donetskoho universytetu. 2016. No. 1/2. P. 73—80 [in Ukrainian].

Arrowsmith S. Horizontal policies in public procurement: a taxonomy. Journal of public procurement. 2010. Vol. 10. Iss. 2. P. 149—186. https://doi.org/10.1108/JOPP-10-02-2010-B001

Lundberg S., Marklund P. Green public procurement and multiple environmental objectives. Economia e Politica Industriale. 2018. Vol. 45. Iss. 1. P. 37—53. https://doi.org/10.1007/s40812-017-0085-6

Proposal for Directive of the European Parliament and the Council on public procurement. COM(2011)869 final. URL: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0896:FIN:EN:PDF

Monti M. Report to the President of the European Commission Jose Manuel Barroso on a new strategy for the single market. At the service of Europe’s economy and society. 2010. URL: http://ec.europa.eu/internal_market/strategy/docs/monti_report_final_10_05_2010_en.pdf

Case C-368/10, Commission v. Kingdom of the Netherlands: [2012] E.C.R. n.y.r. URL: https://eur-lex.europa.eu/legalcontent/EN/TXT/?uri=CELEX%3A62010CJ0368

Nsiah-Asare E., Prempeh K.B. Measuring of Ensuring Value for Money in Public Procurement: a Case of Selected Polytechnics in Ghana. Munich Personal RePEc Archive. 2016. URL: https://mpra.ub.uni-muenchen.de/70051/1/MPRA_paper_70051.pdf

What is value for money? URL: https://www.felp.ac.uk/taxonomy/term/461

What is best value for money? URL: https://www.finance-ni.gov.uk/articles/definition-best-value-money

Lundberg S., Marklund P. Green public procurement as an environmental policy instrument: cost effectiveness. Environmental Economics. 2013. Vol. 4. Iss. 4. P. 75—83.

Oko-Institut & ICLEI. Study on costs/benefits of Green public procurement in Europe, Part 1: Comparison of the Life Cycle Costs of Green and Non Green Products. URL: http://ec.europa.eu/environment/gpp/pdf/eu_recommendations_1.pdf

EU GPP criteria. URL: http://ec.europa.eu/environment/gpp/eu_gpp_criteria_en.htm

Iraldo F., Nucci B., Giacomo M.R. The relevance of life cycle costing in green public procurement. Economics and Policy of Energy and Environment. 2016. No. 1. P. 91—109. https://doi.org/10.3280/EFE2016-001005

Weller C., Pritchard J.M. Evolving CJEU Jurisprudence: Balancing Sustainability Considerations with the Requirements of the Internal Market. European Procurement and Public Private Partnership Law Review. 2013. No. 1. P. 55-59. https://doi.org/10.21552/EPPPL/2013/1/165

Case C-379/98, PreussenElektra AG v Schleswag AG [2001] ECR I-2099. URL: http://curia.europa.eu/juris/liste.jsf?language=en&num=C-379/98

Case 45/87, Commission v Ireland [1988] ECR 04929. URL: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A61987CJ0045

Arrowsmith S., Kunzlik P. Public procurement and horizontal policies in EC law: general principles in Arrowsmith and Kunzlik. Social and Environmental Policies in EC Procurement Law: New Directives and New Directions: monograph. Eds. S. Arrowsmith, P. Kunzlik. Cambridge, UK: Cambridge University Press, 2009. P. 9—54. https://doi.org/10.1017/CBO9780511576041.004

Case C-513/99, Concordia Bus Finland: [2002] E.C.R. I-07213. Available at: http://curia.europa.eu/juris/liste.jsf?language=en&num=C-513/99

Opinion of Advocate General Mischo. Case C-513/99 - Concordia Bus Finland Oy Ab v Helsingin Kaupunki and HkIBussiliikenne. 2001. para. 150. URL: http://curia.europa.eu/juris/showPdf.jsf;jsessionid=9ea7d2dc30dd3ec6641d6ab042baac51f70bbce43a3a.e34KaxiLc3qMb40Rch0SaxuPa3r0?text=&docid=46971&pageIndex=0&doclang=EN&mode=lst&dir=&occ=first&part=1&cid=99860

Case C-448/01, EVN AG and Wienstrom GmbH v Republic Austria [2003] E.C.R. I-14527. URL: http://curia.europa.eu/juris/showPdf.jsf?docid=71234&doclang=EN

Martens M., Margerie S. The Link to the Subject-Matter of the Contract in Green and Social Procurement. European Procurement & Public Private Partnership Law Review. 2013. Vol. 8. Iss. 1. P. 8—18. https://doi.org/10.21552/EPPPL/2013/1/158

Andrecka M., Mitkidis K.P. Sustainability requirements in EU public and private procurement — a right or an obligation? 2017. URL: https://journals.aau.dk/index.php/NJCL/article/download/1982/1536

Green paper on the modernization of EU public procurement policy Towards a more efficient European Procurement Market. European Commission. COM/2011/0015 final. URL: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2011:0015:FIN

Semple A. The Link to the Subject-Matter: A Glass Ceiling for Sustainable Public Contracts? URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2565051

Act on Promotion of Procurement of Eco-Friendly Goods and Services by the State and Other Entities (Act on Promoting Green Procurement). URL: https://www.env.go.jp/en/laws/policy/green/index.html (last accessed: 28.07.2018).

Policy on Green Procurement. URL: http://www.tbs-sct.gc.ca/pol/doc-eng.aspx?id=32573

A sampling of successes in green public procurement. Case studies of green public procurement implementation in Asia-Pacific countries. 2017. URL: http://www.greengrowthknowledge.org/sites/default/files/downloads/best-practices/UNEP_ sampling_successes_green_public_procurement_case_studies.pdf

Published

2024-10-08

How to Cite

Malolitneva, V. (2024). «GREEN» PUBLIC PROCUREMENT: POTENTIAL BENEFITS AND CHALLENGES FOR UKRAINE. Economics and Law, 51(3), 3–16. https://doi.org/10.15407/econlaw.2018.03.003