Promoting Sustainable Consumption and Production (SCP) in the Philippines through DTI’s Green Public Procurement (GPP) Program

SWITCH-Asia Networking Meeting at the ASEAN +3 Leadership Forum 30 September – 1 October 2014 Denpasar, Indonesia

Department of Trade and Industry-Green Public Procurement

- launched in January 2013 - a partnership between the Philippine Government and the European Union through its Switch Asia Policy Programme - an inter-office initiative led by the General Services Division (GSD) under DTI’s Management Services Group (MSG) in collaboration with other bureaus/offices

The Project

*  2011-2016 Philippine Development Plan *  Executive Order 301, s 2004 *  RA 9003 (Ecological Solid Waste Management

Act of 2000) *  RA 9184 (New Government Procurement Act)

Policy Framework

*  Project Goal: “To encourage businesses towards an environmentally sustainable consumption and productivity”

*  Project Purpose: “ To support and provide incentives to government contractors producing an ecologically certified product” *  Outcome Statement: “Availability of eco-labelled products in the market ready to be procured by government instrumentalities”

Logical Framework Design

Core Activities A. Product-based Approach

Key Components

FIRST STEP SECOND STEP

Paper products Printers and consumables

Office IT Lighting materials

Freezers/cooling units Vehicles

B. Additional Approaches

Key Components

Expected Outputs

Enlarged and enhanced preventive maintenance program for vehicles

Enlarged Fleet Card program

ENERCON measures and awareness raising activities

New contract conditions for suppliers (adapted to GPP)

C. Life Cycle Costing Future costs can be taken into account by adding specific criteria to the technical specification (e.g. introducing limits on energy and resource consumption)

Key Components

D. Communication Internal and External

E. Business Engagement Maintain close engagement with Micro, Small, Medium Enterprises throughout the implementation of the program

- Technical assistance - Marketing support

Key Components

*  Training Provision for technical assistance to prospective suppliers and vendors

*  Monitoring and Review *  Design a Knowledge Management System *  Monthly reports

Key Components

1. Co-organized the Seminar Workshop on Green Public Procurement with EU-SWITCH Philippines

a.  Awareness on the concepts of Sustainable Consumption and Production , GPP and Eco-labelling

b.  Discussed the implementation of GPP in the context of the Government Procurement Law (RA 9184) and EO 301 (GPP) c.  Formulate informed ideas for the drafting of the DTI GPP Action Plan

Achievements

2. Drafted the Green Public Procurement Action Plan through the assistance of a Green Procurement expert

a. External meetings with relevant government – agencies (i.e. DBM-PS, GPPB, COA, PCCI, PCEPSDI) b. Creation of GPP Technical Working Group

c. Internal meetings within the project management team

Achievements

3. Co-organized Life Cycle Costing Workshop a. Participants were from different DTI attached agencies b. Raise awareness in regards to the methodological concept and the application of life cycle costing

Achievements

3.Capacity-building for GPP program managers, members of the Technical Working Group, and procurement officers through participation in training workshops

a. ASEAN+3 Green Procurement Program and Eco- labelling Workshop on Sustainable Consumption and Production Program, Seoul b. Regional Workshop on Life Cycle Costing as a tool for Sustainable Public Procurement, Kuala Lumpur

Achievements

4. Participated at the Suppliers’ Forum on Green Procurement and Eco-labelling under the PCEPSDI and the Green Procurement Suppliers Forum under Green Philippines Exhibition

Achievements

1. Resistance from the vendor side: “prevailing impression that adopting green process and eco-labelling is another cost of production and of doing business”

2. Close coordination with other relevant agencies

3. While there is already a policy statement in the PDP and MSME Development Plan, there is no clear pathway how this policy can be implemented with adherence to RA 9184

Challenges and Priorities

Challenges

4. Development of eco-labelling standard as (government) procuring entity’s preferred standard 5. Propagation of green labelling and certification standards among existing and prospective bidders 6. Promotion of green products and services through to public recognition/honor awards program, trade fair and other mechanisms for champions of green products and services

Challenges

7. Promotion of green products and services through to public recognition/honor awards program, trade fair and other mechanisms for champions of green products and services 8. Documentation of the green innovation developed within the DTI procurement system and creation of database of accredited/ certified green suppliers

Challenges

9. Assessment of the learnings developed from the project; and production of manuals and promotion materials that will encourage replication by other government agencies as well as by the private sector 10. Conceptualization of programs to assist enterprises in adopting green production process and eco-labelling ( e.g. Green Audit, Green Financing, etc.)

Towards a Policy Shift

The DTI-GPP, ultimately, seeks to influence the immediate shift of existing procurement policy directions on the following fronts:

•  Strict implementation and support to EO 301 on green procurement program and eco-labelling

•  Adoption of agency-level rules and regulation on

green procurement and advocacy •  Submission of proposals and recommendations to

amend and further strengthen RA 9184 to incorporate green procurement agenda in its Implementing Rules and Regulations (IRR)

Greening the DTI Supply Chain

DTI is committed to champion and lead in the greening of supply chain in the public sector. W i t h i t s p u r s u i t f o r t r a n s p a r e n c y , competitiveness, and accountability in the procurement process, as enshrined in RA 9184.

361 Trade and Industry Building, Sen. Gil J. Puyat Avenue Makati City 1200 Philippines

DEPARTMENT OF TRADE AND INDUSTRY Enabling Business, Empowering Consumers www.dti.gov.ph