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Workshop on Understanding The Green Market:Eco-labelling & Carbon Footprint
4 July 2012, Putrajaya
S.S.ChenEnvironmental Technology Research Centre
Copyright © 2012 SIRIM BERHAD
Copyright © 2012 SIRIM BERHAD
National Initiatives
Regional and International Initiatives
Private Sector-driven Initiatives
Copyright © 2012 SIRIM BERHAD
Negate impacts of anthropogenic activities on environment through:Reduce emission of green house gas and other air-borne pollutants Reduce waste generationReduce resource consumptionReduce use of hazardous substances
using regulatory or voluntary measures such as:Ecodesign or Design for environmentCleaner Production including Waste Minimisation, Energy Efficiency and Good Manufacturing PracticesCommunication through labelling e.g. Energy Efficiency, Ecolabelling, Forest Stewardship
SIRIM Berhad… We Make Businesses Compete Better Through Quality and Technology Innovations
MALAYSIA’S Commitment at UN Climate Change Conference
(COP15) Copenhagen 17 December 2009
Source:http://www.demotix.com/photo/207416/malaysian-prime-minister-cop15207416
“I would like to announce here in Copenhagen that Malaysia is adopting an indicator of a voluntary reduction of up to 40% in terms of emission intensity of GDP by the year 2020 compared to 2005 levels,……” (Extracted from Speech by Prime Minister of Malaysia at COP 15)
http://ssig.kpkk.gov.my/ssig/kcent/material/SPEECH
SIRIM Berhad… We Make Businesses Compete Better Through Quality and Technology Innovations
GHG Emission by Sectors in Malaysia (2007)
Source: Abdul Rahim Nik, Voluntary Emission Reduction for Malaysia – Role of RE? RE Technology Roadmap Workshop, PD. May 2010
LULUCF13%
Processes
6%Agriculture3%Waste
12%
Energy66%
Malaysia’s Road Map for GHG Reduction
Energy industriesRenewable Energy – installed capacity of 10% by 2020Energy Efficiency – reduce energy demand by 3% by 2020 e.g. reduce energy demand of industrial sector and light bulb replacement by 2011
Solid waste managementScenario 1: 22% recycling rate
GHG emissions can be reduced up to 11 million ton CO2equivScenario 2: Adopt alternative technologies e.g. material recovery facilities and thermal treatment facilities (incinerator)
Reduce emissions up to 25 million CO2equiv
Land Use and Land Use Change and ForestryMaintain at least 50% land area under forest
Source: Abdul Rahim Nik, Chairman, National GHG Working GroupPresented at Renewable Energy Technology Roadmap Workshop, PD. May 2010
Definition & Policy
Source: Ministry of Energy, Green Technology and Water, Malaysia
Development
Applications Systems
Equipment
ProductsConserve natural
environment & resources
Minimises & reduces the
negative impact of human activities
Four pillars of the Policy:Energy - Attain energy independence and promote efficient utilisationEnvironment – Conserve and minimize the impact on the environmentEconomy – Enhance national economic development through the use of technologySocial – Improve the quality of life for all.
Products, Equipment & Systems
Source: Ministry of Energy, Green Technology and Water, Malaysia
Target Sectors
Energy Building Water & Waste Management Transportation
Minimsesdegradation of
the environmenht
Zero or low GHG emission
Safe for use & promotes healthy
and improved environment
Conserves the use of energy and natural resources
Promotes the use of renewable
resources
Ensure climate-resilient development to fulfill national aspirations for sustainability
Source: Ministry of Natural Resources and Environment
Target Sectors
Energy securityIndustriesTransportationPublic infrastructuresWaste managementHuman settlementsForestryAgriculture
Initiate measures…low
carbon economy to enhance global
competitiveness..
Source: Ministry of Energy, Green Technology and Water, Malaysia
To formulate policies and identify the strategic issues in the National Green Technology Policy development and climate change. It also coordinates, monitors and evaluates the effectiveness of the National Green Technology Policy and Green Technology programmes and climate change at the national level
8 Working Committees.Industry Working Committee
Human Capital Working CommitteeResearch and Innovation Working CommitteePromotion and Public Awareness Working CommitteeTransportation Working CommitteeGreen Neighbourhood Working CommitteeAdaptation Working CommitteeGreen Development Working Committee.
Copyright © 2012 SIRIM BERHAD
MALAYSIAECO-LABEL
Copyright © 2012 SIRIM BERHAD
Green Purchasing Law (214 products)
California Environmentally Preferable Purchasing
Green Public Procurement (27 countries)
City of San Jose Environmentally Preferable Procurement Policy
County of Sacramento Environmental Purchasing Policy Nevada County
Green Procurement and Sustainable Practices Policy
Executive Order 1301
Policy on Green
ProcurementGreen
Procurement Policy
Green Government Procurement
Government Green Procurement
Green Public Procurement
Copyright © 2011 SIRIM BERHAD
Copyright © 2012 SIRIM BERHAD
A process whereby public authorities seek to procure goods, services and works with a reduced environmental impact throughout their life cycle.
Source: EU Green Public Procurement
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Sustainable Consumption and Production & Sustainable Industrial Policy Action Plan
Ecodesign DirectiveEcolabel regulationEMAS (Environmental Management System) RegulationEnergy Labelling DirectiveProposal for a Regulation for Environmental Technology Verification SchemeCommunication on Green Public Procurement
Copyright © 2012 SIRIM BERHAD
Environmentally-preferred Goods in Green Procurement Guidelines
Green purchasing guidelinesConsider environmental impactsFocus on one or more environmental problems, such as climate change and wasteConsider availability and cost of environmentally superior alternativesConsider availability of data
European Commission has developed a database of environmental information of product and service groups such as eco-labelled products.European Eco-labels and national eco-labels can be very useful for contracting authorities because they provide technical specifications that can be cut and pasted into tender documents….
Source: http://ec.europa.eu/environment/gpp/guideline_en.htmBuying green! A handbook on environmental public procurement, European Communities 2004
Copyright © 2012 SIRIM BERHAD
10 identified priority sectors:Construction- covering raw materials e.g. wood, steel; construction products e.g. floor coverings, maintenance services etc.Food and catering servicesTransportElectricityOffice IT equipmentTextiles paperFurnitureCleaning products and servicesGardening products and services
Copyright © 2012 SIRIM BERHAD
Impact of GPP to consumers purchasing practices
Improving public image:• -85% of EU citizens feel that policymakers should
consider the environment to be as important as economic and social policies.
• implementing a policy of GPP is a very effective way to demonstrate the authority’s commitment to sustainability as a whole.
• through leading by example, public authorities can also encourage private sector companies and the general public to change their consumption habits.
SIRIM Berhad… We Make Businesses Compete Better Through Quality and Technology Innovations
Regulations in accordance with the
characteristics of specific products
Waste Management and Public Cleansing Law
Law for Promotion of Effective Utilization of Resources
Con
tain
er
and
Pack
agin
g R
ecyc
ling
Law
Basic Law for Establishing a Sound Material-Cycle Society
(Basic fundamental law)
<Promotion of the Recycle><Proper Waste Management>
General system
Green Purchasing Law
Legislative System to Create a Sound Material-Cycle Society JAPAN
Hom
e Ap
plia
nce
Rec
yclin
g La
w
Con
stru
ctio
n M
ater
ial
Rec
yclin
g La
w
Food
R
ecyc
ling
Law
End-
of-L
ife
Vehi
cle
Rec
yclin
g La
w
Source: Adapted from Presentation by METI, Japan at Japan-Malaysia GPP Dialogue, 2008
Creating more opportunities for Consumers to Purchase Eco-Friendly Goods
Promotion ofGreen PublicPurchasing
GeneralConsumers
Efforts toward Establishing anEnvironmentally Friendly and Sustainable Society
Green Purchasing
Evaluation of Suppliers
Provision of Goods
Suppliers
Encourage suppliers to develop products that contribute to reducing environmental impacts Promote environmental awareness among businesses Influence suppliers through market mechanisms from the demand side
Source: Ministry of Environment, Japan
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Law on Promoting Green Purchasing
which satisfy any of following criteriaI. Products in which the parts/components used
contribute to the reduction of environmental impact;or
II. Greenhouse gases emitted from the use of the goods do not cause a large environmental impact;or
III. The whole or part of the goods can be reused/recycle; hence reduce generation of waste;or
IV. Services provided utilise goods that contribute to the reduction of environmental impact
Eco-Friendly Goods and Services:-
Federal & Local Governments Public Companies Private Companies
Copyright © 2012 SIRIM BERHAD
Provide Appropriate Information on Environmentally Goods and Services under Green Purchasing Law
Manufacturers
Provide environmental information on their
products
• Manage and analyse information provided by manufacturers and environmental labelling organisations
• Provide guidelines on appropriate information methods on eco-friendly goods and services
Environmental Labelling Organisations
The Government
Promote ecolabelling activities, highlighting the scientific analysis while
complying to the international ecolabelling standards
Designated procurement items
Product Services
Parts and Materials
Copyright © 2012 SIRIM BERHAD
Green Procurement Policy
Green Government Procurement approved by Cabinet in 2008:
Staggered implementation from 25% of agencies in 2008 to 100% by 2011Products certified under the Green Label Program (247 products)Tourist accommodation under the Green Leaf Program
Criteria for green products – based on life cycle assessment minimize the environment Impact and health effects to the consumers
Source: Pornsri Suthanaruk, Green Public Procurement Workshop, 2010, Shah Alam
Copyright © 2012 SIRIM BERHAD
Covers products and services with following specification:Less environmental impact, less/no toxic, recyclableLight Weight, use less materialsResponsible price for the whole lifeUse less natural resources and energy during production processMinimize waste from production process Good logistics, less environmental impactPackaging can be recycledLess energy consumption during use Good management after end of product life ie, some parts can be recycled
17 designated products and 3 service categories which are eco-labelled under the Thai Ecolabel, Shopping Cart and Green Leaf
Source: Pornsri Suthanaruk, Green Public Procurement Workshop, 2010, Shah Alam
Copyright © 2012 SIRIM BERHAD
Directories of Green Products
Eco-Products Directory > 400items listed under:
Eco-materials
Eco-components
Eco-products
Eco-services
2011 Version
Eco products under government
green procurement
Other eco labeling: carbon
footprint, carbon reduction, No. 5
energy saving label, green leaf, etc.
Source: Pornsri Suthanaruk, Green Public Procurement Workshop, 2010, Shah Alam
Copyright © 2012 SIRIM BERHAD
Directories of Green Products
Green Products and Services Manual:Type of products & servicesCriterion of green products and servicesExamples of Procurement
Source: Pornsri Suthanaruk, Green Public Procurement Workshop, 2010, Shah Alam
Copyright © 2012 SIRIM BERHAD
Copyright © 2012 SIRIM BERHAD
Green Purchasing Law July 2005, mandate public agencies to purchase eco-products
Korea Ecolabel-certified product or products satisfying the certification criteria
Good recycled mark- certified products or products satisfying certification criteria
Other eco-products notified by the Ministry of Environment
Korean ecolabelling criteria exist for 111 product categories; 5320 products had received certifications as of 2007.
Copyright © 2012 SIRIM BERHAD
The Environmental Labelling Programme of China launched in 2003 has certified >18,000 products from >900 enterprises.
Government Green Procurement list on Environmental Label Products released in 2007:
2,823 ecolabelled products10,239 energy saving products
Government Green Purchasing amounted to USD3.5 billion in 2007
Copyright © 2012 SIRIM BERHAD
Government Green Procurement Law 1999 where government agencies have priorities to buy three types of green products:
Products awarded the Green Mark or a foreign country’s eco-label that has signed a mutual recognition agreement with the Green Mark Programme.
Products that can meet the requirements of ‘regenerated material, recyclable production and energy saving’ but does not fit into the Green Mark category although third party certification is needed.
Products that reduce social cost and have been certified by a responsible agency
Copyright © 2012 SIRIM BERHAD
The Government Procurement Guideline 2002 emphasizes:
Whole of life costing of purchasesEco-labelling requirements and energy efficiency rating of products and buildingsOzone depleting substancesCapability of industry to produce environmentally responsible goods Volume and nature of packaging- all packaging should be recyclable, biodegradable and non-toxicMinimize the use of non-renewable resourcesApply 5Rs (Refuse, Reduce, Reuse, Recycle and Recover)
Copyright © 2012 SIRIM BERHAD
Government of Canada’s Green Plan (1990) included green purchasing
Launched “Sustainable Development in Government Operations” (1999)
Published green purchasing guidelines and checklists covering papers, furniture,hotels and meetings.
Major promotion programs include Environmental Choice, Energy Star, Green Leaf Eco-rating Program.
Copyright © 2012 SIRIM BERHAD
Environmentally preferable purchasing (EPP) programmes 1998 based on “executive order 13101 that requires all the procurement officials to give preference to environmentally preferable products and services in terms:
Recycled contentEnergy efficient productsBio-based materials
SIRIM Berhad… We Make Businesses Compete Better Through Quality and Technology Innovations
ENVIRONMENTAL ATTRIBUTES(Survey of Green Specification Requirements)
LCA
EM
S/E
MA
SH
azar
dous
sub
st.
Eco
desi
gnP
ract
ice
3Rs
Pac
kagi
ng
Gre
en p
rocu
rem
ent
Eas
e of
dis
posa
l
Glo
bal w
arm
ing
Ene
rgy
effic
ienc
yO
zone
dep
letio
nIn
form
atio
n di
sclo
sure
Reg
ulat
or c
ompl
ianc
e E
duca
tion
& tr
aini
ng
Em
erge
ncy
Res
pons
eLa
belli
ng
Red
uced
eco
-bur
dens
Spe
cific
requ
irem
ent0
5
10
15
20
25
30
Spe
cific
mat
eria
lsR
ecyc
able
MS
DS
Source: SIRIM, Green Manual
SIRIM Berhad… We Make Businesses Compete Better Through Quality and Technology Innovations
GREEN PROCUREMENT EVALUATION CRITERIA
Evaluation of the supplier’s environmental management practices
Evaluation of the products with respect to specific environmental attributes
The evaluation criteria adopted in almost all of the green procurement guidelines of private companies can be broadly defined under two categories:
SIRIM Berhad… We Make Businesses Compete Better Through Quality and Technology Innovations
How Much can a Company be in Control of the Environmental Impacts of their Products?
Emissions andWaste Treatment
Suppliers Selection/
Procurement Practices
TechnologySelection
Production/Manufacturing
ProcessesWorkers’ Skill &
Awareness
Product Design
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