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

Series "Law": Legal regulation of economic relations in specific areas and sectors of the economic

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.


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  33. 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).

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Keywords

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

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References

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10. Arrowsmith S. Horizontal policies in public procurement: a taxonomy. Journal of public procurement. 2010. Vol. 10. Iss. 2. P. 149—186.

11. Lundberg S., Marklund P. Green public procurement and multiple environmental objectives. Economia e Politica Industriale. 2018. Vol. 45, Iss. 1. P. 37—53.

12. 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 (last accessed: 05.08.2018).

13. 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 (last accessed: 18.06.2018).

14. 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 (last accessed: 07.08.2018).

15. 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 (last accessed: 10.08.2018).

16. What is value for money? URL: https://www.felp.ac.uk/taxonomy/term/461 (last accessed: 08.08.2018).

17. What is best value for money? URL: https://www.finance-ni.gov.uk/articles/definition-best-value-money (last accessed: 08.08.2018).

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

19. 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 (last accessed: 13.08.2018).

20. EU GPP criteria. URL: http://ec.europa.eu/environment/gpp/eu_gpp_criteria_en.htm (last accessed: 15.08.2018).

21. 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. № 1. P. 91—109.

22. 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. № 1. P. 55—59.

23. 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 (last accessed: 18.08.2018).

24. Case 45/87, Commission v Ireland [1988] ECR 04929. URL: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A61987CJ0045 (last accessed: 18.08.2018).

25. 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.

26. 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 (last accessed: 25.05.2018).

27. Opinion of Advocate General Mischo. Case C-513/99 — Concordia Bus Finland Oy Ab v Helsingin Kaupunki and HkI-Bussiliikenne. 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 (last accessed: 25.05.2018).

28. 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 (last accessed: 17.05.2018).

29. 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.

30. 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 (last accessed: 10.07.2018).

31. 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 (last accessed: 14.01.2018).

32. 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 (last accessed: 20.07.2018).

33. 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).

34. Policy on Green Procurement. URL: http://www.tbs-sct.gc.ca/pol/doc-eng.aspx?id=32573 (last accessed: 28.07.2018).

35. A sampling of successes in green public procurement. Case studies of green public procurement implementation in AsiaPacific countries. 2017. URL: http://www.greengrowthknowledge.org/sites/default/files/downloads/best-practices/UNEP_ sampling_successes_green_public_procurement_case_studies.pdf (last accessed: 28.07.2018).
Published
2018-12-05
How to Cite
MALOLITNEVA, V.K.. «GREEN» PUBLIC PROCUREMENT: POTENTIAL BENEFITS AND CHALLENGES FOR UKRAINE. Economics and Law, [S.l.], n. 3 (51), p. 3 - 16, dec. 2018. ISSN 2523-4838. Available at: <http://economiclaw.kiev.ua/index.php/economiclaw/article/view/469>. Date accessed: 23 jan. 2019. doi: https://doi.org/10.15407/econlaw.2018.03.003.