Harnessing Public Procurement for the Green Transition

Iceland

Framework, scope, action-plans

Iceland has a GPP strategy in place, which was last revised in 2021. A detailed action plan accompanies the strategy that ensures alignment between the relevant bodies.

GPP is mentioned in national commitments on climate action.

All public procurement for Central Government Agencies is co-ordinated through Rikiskaup, the Central Procurement Body, in Iceland. They are also responsible for majority of the action items for the Sustainable Procurement Policy, and have an active role in collaboration with market, Environmental Agency, and relevant ministries.

Furthermore, Central Procurement Body, in collaboration with the Environment Agency and market participants, is working on guidelines and tools to facilitate the calculation of the life cycle costs of goods and services. Initially, emphasis will be placed on product categories for which there are European guidelines and aids (purchase of vending machines, printers and copiers, computers and monitors, indoor lighting and outdoor lighting). The main uncertainties in the life cycle cost calculations will be analysed.

Implementation

Iceland has adopted mandatory requirements to use GPP for procurement above a certain monetary threshold, and for specific purchasing categories. Most notably, the Action Plan identifies certain categories for implementation but the practice of GPP has exceeded the mentioned categories. Ríkiskaup annually reviews the product categories covered by this, in consultation with the Environment and Food Agency, until all competent agreements are environmentally friendly. The mandatory requirements to use GPP apply at all levels of government.

Iceland has also adopted GPP targets, which apply at all levels of government. In terms of GPP criteria, the action plan refers to the published European GPP criteria, as well as national examples (all tenders go through Central Procurement Body that has all those prior examples in stock).

Measurement and impact

Contracting authorities in Iceland report through an independent digital platform that is not linked to the eProcurement system: Green Accounting through Green Steps.

Through Green Steps Accounting information is collected on the factors that cause negative environmental effects Greenhouse gas emissions from transport, waste and energy consumption are calculated automatically. A summary of Green Accounting is useful for communicating environmental policy Figures from Green Accounting highlight what could be done better with the operation. The Green Accounting Report provides information to the public about the agency.

A central measurement of the GPP strategy is the percentage of central government procurement procedures where some green criteria is utilised. The statistics are publicly available online.

Figure ‎6.1. Percentage (%) of central government procurement procedure with GPP criteria

Source: https://www.stjornarradid.is/verkefni/rekstur-og-eignir-rikisins/opinber-innkaup/

Recent developments

In the 2024 budget proposal. the government has announced a plan to publish a new and updated action plan for the GPP strategy in 20241.

The Iceland’s government has also implemented a regulation for the promotion of clean and energy-efficient road transport vehicles where the country goal for light vehicles has been set at 38.5%. The government has been tracking the procurement of clean vehicles for central government entities and the percentage of electric car has gone from 8% of new car registrations for light vehicles to 43% in 20212. The statistic is not available for the whole public sector but clean vehicles as % of all vehicles on the road is at 8% in Iceland and as percentage of new car registration at 33% for electric cars and 22% for hybrid.