DBPapers
DOI: 10.5593/SGEM2014/B53/S21.026

GREEN PROCUREMENT AND LIFE-CYCLE COST ASSESSMENT – HOW TO MAKE THE BEST CHOICE OF ENVIRONMENTALLY FRIENDLY, ENERGY EFFICIENT AND COST EFFECTIVE PRODUCTS AND SERVICES

E. Stoykova
Wednesday 1 October 2014 by Libadmin2014

References: 14th International Multidisciplinary Scientific GeoConference SGEM 2014, www.sgem.org, SGEM2014 Conference Proceedings, ISBN 978-619-7105-19-3 / ISSN 1314-2704, June 19-25, 2014, Book 5, Vol. 3, 191-198 pp

ABSTRACT
People realize that actions should be taken in order to protect our environment, to face problems related to climate change, depletion of natural resources and harmful gas emissions. Many countries, including EU, have implemented policies for sustainable energy development, reduction of harmful gases emissions and protection of the environment. These policies lead to the market penetration of new products and services. Unfortunately, the prominent reaction of people and stakeholders when it comes to make a choice of products or services is “Green is too expensive”. The methodology of Green Procurement shows that more environmentally friendly products and services can be more profitable. The idea of “Green Procurement” is to compare the qualities and performances of different solutions during their whole lifecycle, and to give preference to the solution that shows the best ratio cost/performance. Green procurement is also a tool for wider market penetration of innovative solutions for improvement of the energy characteristics of products and services, for the use of recycled materials and decrease of CO2 emissions. Green procurement can be applied for a wide range of products and services as: building materials and components, vehicles, IT equipment, green energy, household appliances, paper, cleaning products, textiles and food and catering, and others. Green procurement is based on:
 Detailed demand analysis
 Clear definition of subject matter
 Definition of specifications of the product
 Definition of award criteria as: better functional performance, life-cycle cost
analysis, lower energy consumption, longer lifetime, etc.
 Definition of contract performance clauses
Green procurement can be implemented at all levels and in all companies or institutions, as well public and private organizations.

Keywords: green procurement, LCC, energy efficiency, economics