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Introduction to Green Fiscal Policy

Green Public Procurement

Green Public Procurement (GPP) is a practice that involves purchasing goods and services that have minimal adverse effects on the environment. This is achieved by considering the environmental impact of goods and services throughout their life cycle, including their production, transportation, use, and disposal. Essentially, GPP involves using public procurement as a tool to promote sustainable production and consumption patterns.

Forms of GPP

GPP can take many forms depending on the specific context and goals of the procurement process. For example, GPP may involve:

  • setting environmental criteria for the procurement of goods and services, such as minimum energy efficiency standards or requirements for the use of recycled materials.
  • selecting suppliers based on their environmental performance or requiring them to demonstrate their commitment to sustainability through certification schemes.

Positive Environmental Impacts of GPP

GPP has the potential to create positive environmental impacts by encouraging the development and adoption of more sustainable goods and services. Additionally, GPP can act as a market signal, promoting the demand for environmentally friendly products and services, which can in turn stimulate innovation in green technologies and practices.

Challenges Associated with GPP

However, there are also challenges associated with GPP. One challenge is ensuring that environmental criteria are effectively integrated into procurement processes and that the criteria are based on robust scientific evidence. Additionally, GPP may face resistance from suppliers who are not able to meet environmental criteria or who perceive GPP as an additional administrative burden. Finally, GPP can be limited by legal and regulatory frameworks, which may not provide sufficient guidance on how to effectively implement and monitor GPP policies.

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