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Circular procurement & infrastructure

Circular public procurement leverages the purchasing power and large material portfolios of public bodies to drive market demand, stimulate innovation and promote technology and/or service diffusion and serve to overcome certain types of market failure.[1], [2] It refers to the process by which public bodies meet their needs while contributing to the closing of energy and material loops, to minimise environmental degradation throughout supply chains.[3] Public procurement also encompasses the circular management of a public body’s asset portfolio and the provision of circular public infrastructure.[4], [5] Circular asset management strategies can be utilised to ensure both optimal utilisation and performance of public sector assets throughout their lifecycle as well as establishing optimal end-of-life arrangements by implementing, for example, product-service systems and buy-back agreements. The provision of public infrastructures can directly facilitate the closing of material and energy loops and enable circular activities and investment by business and society at large.

 

[1] IPP (Innovation Policy Platform). N.d.. Public procurement for green innovation. The Innovation Policy Platform, OECD & World Bank. Available online via: https://www.innovationpolicyplatform.org/content/public-procurement-green-innovation

[2] EMF (Ellen MacArthur Foundation). 2015. Delivering the Circular Economy: A Toolkit for Policymakers. Available online via: https://www.ellenmacarthurfoundation.org/assets/downloads/publications/EllenMacArthurFoundation_PolicymakerToolkit.pdf

[3] European Commission. 2017. Public procurement for a circular economy: Good practice and guidance. Available online via: http://ec.europa.eu/environment/gpp/pdf/Public_procurement_circular_economy_brochure.pdf

[4] Ngwira, M. & Manase, D. 2016. Public Sector Property Asset Management. John Wiley & Sons, Ldt.

[5] Quareshi, Z. N.d. The Role of Public Policy in Sustainable Infrastructure. Global Economy and Development, Brookings Institute. Available online via: https://www.brookings.edu/wp-content/uploads/2016/07/public-policy-sustainable-infrastructure-qureshi-1.pdf

Relevant case studies and articles