Harnessing Public Procurement for the Green Transition

Lithuania

Framework, scope, action-plans

The XVIII Programme of the Government of the Republic of Lithuania, approved by Government Resolution on the 11th of December 2020, has set the vision for GPP as one of the key instruments in greening the public sector and shifting the market towards a green economy. The National Progress Plan 2021-2030 (Government Resolution 2020-09-09 No. 998) also highlights the need to increase the proportion of GPP in public procurement. This Pan is of most significant importance for Lithuanian development which defines objectives and indicators for sustainable development.

Following this Government Resolution No. 478, the Minister of Environment on July 30th, 2021, signed order Nr. D1-448 for Green Public Procurement Plan 2021-2025 Strategy and Implementation which delegates the tasks and defines the timeline for various strategic objectives until 2025.

According to Government Resolution No. 478, all contracting authorities must apply the green purchasing rules and criteria when purchasing goods, works, or services. The rules and criteria for green purchasing are detailed by the Order of the Minister of Environment No. D1-508.

The Climate Action Agenda approved by the Lithuanian Parliament on the 30th of June 2021 by Resolution No. XIV-490 also highlights that green purchasing must become a dominant practice as of 2023.

National Energy and Climate Action Plan of the Republic of Lithuania 2021-2030 emphasises GPP as a policy measure to minimise transport sector pollution and create a stimulus for investments in green technologies and innovation. GPP shall also extend the scope and commitment of the public sector to climate neutrality.

The Ministry of Environment Sustainable Development and Strategic Change division has a unit of Green Public Procurement policy. This unit is predominantly focused on GPP national policy and co-ordination. The GPP unit is specifically working with the rules and criteria for GPP as well as co-ordinating the actions and plans with the Public Procurement Office.

Implementation

According to the Government Resolution No. 478 all purchasing organisations as they are defined by the Law of Public Procurement as well as organisations that are using EU funds have to purchase goods, works and services with the least environmental footprint possible. All purchases must integrate the GPP criteria and reach the 50% of total PP done per year in 2022 and 100% in 2023. There are exceptions when purchasing low value goods is done without a contract (by voice) (up to 5000 EUR), as well as international donors projects, and the food purchases for the national defense and NATO missions and objectives.

To implement the Programme of the Government, Government Resolution No. 478 On Green Public Procurement Goals and Implementation was signed on 21st June 2021, which established national targets for GPP % of all public procurement value: >10 % in 2021, >50 % in 2022, and 100 % in 2023 and onwards. According to the Resolution public institutions must also integrate the GPP commitments in the internal strategic documents and frameworks.

Public procurement office has established a sustainable procurement division – a Competence center, which is responsible for consulting public authorities with regards to procurement practices when implementing environmental criteria. This Competence center is especially significant establishment that is pivotal in ensuring that public institutions and organisations can meet the Governments ambitions for GPP.

Measurement and impact

Public institutions report on GPP through a digital platform linked to the eProcurement system: The purchasing organisations must file all the purchasing documents and provide those to Central Public Procurement Information System. The GPP reporting is also provided to the Public Procurement Office, who collects the data and shows the live statistics on the GPP. (https://vpt.lrv.lt/lt/statistika-ir-analize/pirkimu-vykdytoju-zemelapis-svieslente-1/)

Recent developments

Public Procurement Office launched a new IT tool for presenting all green public procurement data visually. This tool helps to filter and see the data about the specific criteria used for all green public procurements. This tool is very important in understanding what specific criteria is used, how its used and for what exact goods or services it has been applied. It helps to see trends and provide additional insight for the Competence center and the Ministry of Environment.

As part of EU LIFE IP EnerLit project, Lithuanian Ministry of Environment in 2023, launched a study for GPP impact analysis. Given that there is a huge gap in the data available, regarding the GPP impact on purchasing decisions and environment overall, the Ministry of Environment launched the study with the objectives to collect empirical evidence to better understand, what is the impact of the GPP policy by comparing various goods and services. This analysis, by the means of collaborative interviews with specific sectors, shall also present how the industry is impacted by the policy. The analysis is expected to be finalised in the first quarter of 2024.

Additionally, Lithuania is pushing forward with the GPP policy in the construction sector specifically. Lithuanian Government in July has come to a decision to approve a legislation which aims at improving sustainable construction in public sector. At least 50 per cent of wood and other organic-based construction products will be used in the construction of the public buildings from November 2024. Accordingly, the Ministry of Environment will have to review and update the GPP environmental criteria by establishing requirements for the wood and other construction materials by the November 2024.

Lithuania is one of the leading countries in the EU and worldwide regarding GPP policy implementation. As part of the Greening Government Initiative (GGI) network, Lithuania delivered a roadmap for becoming a climate neutral government which was also showcased in the recent COP 28 by the Minister of Environment. The roadmap can be found in the GGI‘s Net-Zero Government Initiative page: https://www.sustainability.gov/federalsustainabilityplan/net-zero-initiative.html