Deputy Minister of Strategic Development of Natural Resource

Maria Luisa del Río Advisor to the Deputy Minister of Strategic Development of Natural Resources

Sustainable Public Procurement PERÚ

Contents • General overview of Peru

– Ecosystems and species diversity

– Brief conceptual framework

– “Public expenditure” vs “Public environmental expenditure”

– Sustainable public procurement

– Green growth initiatives

• Measures and initiatives adopted

– Regulations, directives and agreements

– Projects

• Measures adopted into the Ministry

• Key issues

General Overview of Peru

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Life zones 84

Climate types 32

BD Fishes 2000 sp.

BD Birds 1,816 sp.

BD amphibious 449 sp.

BD mammal 515 sp.

1 er

2do

3 er

4 to

BD Flora 25,000 sp.

Ecosystems and species diversity

Peru

We need innovative, efficient, competitive, socially responsible and

environmentally friendly companies, capable of improving the quality of life and increase the welfare of society as a whole.

This is where public policy should focus. These are the companies that should be supported and promoted by public and

private sector.

When we awake in 2062: Visions of Peru

in 50 years.

Seminario, Sanborn and Alva, Editors.

2013

In our context

To lead by example strengthen confidence

Brief conceptual framework

• Public expenditure

• Public environment expenditure

SPP Mainstreaming

biodiversity

Economic Social Environmental

Brief conceptual framework

• Public expenditure

• Public environment expenditure

Mainstreaming

biodiversity

Economic Social Environmental

Public environment expenditure:

Functional Classifier in Environmental

Function Program N° Subprogram

N° 17: Environmental

N° 054: Strategic Development, Conservation and Sustainable Use of Natural Heritage

0119 Conservation and sustainable use of biodiversity and natural resources

0120 Integral and sustainable management of ecosystems

0121 Climate change management

0122 Integrated management of water resources

0123 Land management

N° 055: Integral Management of Environmental Quality

0124 Solide waste management

0125 Conservation and expansion of green areas and public ornament

0126 Integral monitoring and control of pollution and environmental remediation

0127 Integral control of chemicals and hazardous materials

Aprobado mediante RD N° 002-2011-EF/50.01

Share of Public Environmental Expenditure (PEE) on Public Expenditure (PE)

2009 2010 2011 2012

1.9% 1.9%

1.8%

2.0%

Fuente: MINAM

Share of Public Environmental Expenditure

(PEE) on Public Expenditure (PE)

Country PEE/PE (2011) PEE/GDP (2011) PE/GDP (2011)

Peru

1,8%

0,4%

18,8%

Source: Preparation MINAM, with information from the Ministry of Economy and Finance and National

Institute of Statistics and Informatics.

Sustainable Public Procurement

Criteria relationship between price / quality and impartiality of procurement procedures

Observations

1. Environmental:

Many of these criteria are in an early stage. Some are more

progress than others, but not apply to all public procurement

in the country

Avoid buying the production of waste products with a longer shelf life or rechargeable products Reduced consumption of resources Good use of energy consumption in the selection of products Purchasing products easy to recycle

Products exclude hazardous substances to the environment and human health

That product inputs come from a recycling process

2. Socials: Promotion of socio-labor integration Maintaining working conditions Supporting the social economy

Compliance with legislation - non-discrimination, equal opportunities, etc.

3. Ethical:

Products and vendors to ensure decent working conditions throughout the supply chain of the product and service performance

Respect the conventions of the International Labour Organization Guaranteed no use of child labor Transparency in the origin of products and traceability

Supporting products and fair trade organizations as an alternative

Ecoeficiency

National accounts

Public investment

Projects - PIP

Green growth initiatives • National public investment system green (Formulate projects

related to ecosystem services and biodiversity)

• Environmental National Accouting: – Coordination with international organizativos (ONU-Banco Mundial-CEPAL)

and nationals (INEI - MEF)

– WAVES Project (Wealth accounting and valuation of ecosystem services - promote sustainable development, tending the use of national accounts to measure and plan economic growth including the value of natural resources)

– EVA Project (environmental value accounting assessment - gain a better understanding of changes in the capital of ecosystems and human welfare implications)

Green growth initiatives

• National Forest conservation Program for the mitigation of Climate Change for the permanent protection of 54 milloin ha of forest.

Supporting indigenous people and promoting new sustainable activities, more than ony wood.

• BIOFIN: Pilot global project from UNDP.

• ECOTRADE (Program Policy Support Peruvian Export Promotion of Organic Products) from local governments.

• PAGE (Partnership for Action on Green Economy ) with green jobs

• Peer to Peer Program (For an inclusive and sustainable development in Latin - Fiscal Policy)

Examples

Examples of common ecolabels in public procurement 1.

2.

3.

4.

5.

Measures and initiatives adopted

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REGULATIONS, DIRECTIVES AND AGREEMENTS

• Supreme Decree No. 009-2009-MINAM "Eco-

Efficiency Measures for Public Sector”.

The purpose of the Decree is to

approve the eco-efficiency measures

that have the effect of savings in

public spending, according to the

provisions of paragraph 7.5 of Article

7 of Law No. 29289, Law of Public

Sector Budget (FY 2009)

In the following years, the consideration

of eco-efficiency measures for public

sector (SD No. 009-2009-MINAM) are

reflected in the additional provisions of

the budgets laws .

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REGULATIONS, DIRECTIVES AND AGREEMENTS

• Eco-Efficiency Guide for public sector institutions.

The aim of the guide is to facilitate

the process of identification,

implementation and monitoring of

actions arising from the application

of the concepts of eco-efficiency.

It also provides a list of suppliers of

clean energy, water, office supplies,

among others.

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REGULATIONS, DIRECTIVES AND AGREEMENTS

• Agreement between Supervisory Agency the State

Procurement (OSCE - Peru) and Procurement and Public

Contracting (ChileCompra - Chile)

Third clause :

…The OSCE is interested in the

information and training that

“ChileCompra” can deliver, especially in

matters of the framework agreement,

tools for improving and standardizing

procurement, sustainable procurement,

among others

PROJECTS

• Project "Technical cooperation between Chile and Peru

to the development of sustainable public procurement

in both countries." In the framework of the Program

Peer to Peer - P2P (ECLAC, ILPES, GIZ)

• Project "Stimulating Demand and supply of sustainable

products through sustainable public procurement and

Eco-labeling" - Proposal by UNEP (Evaluation Stage)

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MEASURES ADOPTED INTO THE MINISTRY

• Directive No. 002-2011-SG-MINAM "Eco-Efficiency

Policy Measures in the Ministry of the Environment"

Establish eco-efficiency measures

to improve the quality of public

services, generating savings in

public spending that affects

compliance MINAM budget targets,

contributing to environmental

preservation.

Key issues

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a) Lack of an agreed definition of sustainable public procurement.

b) Peru approved the Supreme Decree (184-2008-EF) regulatory of State Procurement Law (No. 1017). Which states the guiding principles procurement (article 4) linked to sustainability. However, the practical implementation of the criteria is situated in a initial phase.

Challenges/barriers

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d) Implement sustainability criteria in public procurement (ex. technical specifications) made by government social programs such as Qaly Warma, Community Kitchens, among others.

e) Promoting environmental sustainability criteria in specific interinstitutional agreements on public procurement.

f) Learning from projects implemented in international experience

g)Enhanced the stakeholders engagement

How to learn form experiences

• Capacity building on sustainable “buying”

• Enhanced cooperation between countries

• Share experiences

• Studies and analysis on legislation, market availability/influence and appropiate technology.

• Market analysis for the supply chain in the public sector.

Thank you very much

Maria Luisa del Rio

MINAM.

mldelrio@minam.gob.pe

www.minam.gob.pe

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