Uptake of Green Public Procurement Higher at Local Governments than Institutions of Direct Public Administration

Last year, Latvian municipalities launched more green public procurements than institutions of direct public administration, as revealed by the Procurement Monitoring Bureau data gathered by the Circular Economy Index team. In 2023, 12% of municipal public procurements included environmental criteria, compared to 7% of green tenders initiated by institutions of direct public administration.

Green public procurement is one of the key tools local governments can use to encourage circularity, mitigate negative environmental impacts, and foster the efficient use of resources.

“They are hands-on tools that make a direct impact, encouraging more sustainable use of resources and their responsible management. When purchasing lights and computers, it is recommended to apply such circular principles as life cycle cost analysis and longer warranty periods, which facilitate extended use of items and reduce the amount of waste produced. In furniture procurements, authorities may include refurbishment requirements and ask for dismantling instructions; for printing equipment, they may ask for refillable ink and toner cartridges. Finally, building projects foresee the creation of waste sorting infrastructure and the reduction of building refuse,” says Inese Pelša, Chair of the Board of the Latvian Sustainable Procurement Association.

Pelša adds that, for now, green public procurement (GPP) in the European Union is voluntary, yet there are already many ways to apply circular principles without substantial financial contributions. It is important to carry out a life cycle cost analysis, request an extended warranty period, refurbishment of items, and ensure the availability of spare parts. These activities ensure sustainability and long-term economic gains.

This year, following CleanR Grupa’s initiative, Latvian scientists are launching a unique project—the first Circular Economy Index of Latvia.

“When we came up with the idea of the Circular Economy Index, we analyzed the experience of other countries, such as Sweden, Belgium, and the Netherlands, to see how they put circular principles into practice. One of the key conclusions was that municipalities are closest to the inhabitants and can utilize tools to encourage smart operations by, for instance, running green procurements. This is one of the ways to promote greener, more circular businesses and serve as a role model to others. Therefore, this was one of the aspects considered by the scientists when calculating the index,” explains Agita Baltbārde, Member of the Board at CleanR Grupa and the initiator of the Circular Economy Index.

The first Circular Economy Index of Latvia will be presented to the public on Wednesday, 11 September. The index team assessed how municipal functions align with the circular economy, carried out municipality and resident surveys, and analyzed the data according to the approved methodology. The organizers have invited media and municipality representatives to attend the opening event.

“We asked municipalities to assess their activities and encouraged inhabitants to submit their suggestions for implementing circularity. Our aim was to create a practical tool that would help municipalities improve their performance, as circularity has a direct impact on sustainability and people’s well-being,” states Dzintra Atstāja, Dr. oec, an economics and sustainable development expert and head of the scientific team.

Unfortunately, Latvia’s performance indicators regarding the circular economy are not particularly pleasing. The EU Circular Economy Plan aims to double the circular material use rate (CMUR) by 2030, which, in essence, means reducing the extraction of new resources and extending the use of existing ones.

Data published by the European Environment Agency at the beginning of 2024 reveal that Latvia’s CMUR stands at 5.4%, while the EU average is currently 11.5%, with a common target for 2030 set at 23.2%.

The Circular Economy Index, including its methodology, was developed by a team of Latvian scientists under the supervision of Dzintra Atstāja, Dr. oec, an expert in economics and sustainable development.

The essence of the index is to assess the overall situation using the weighted average method. The aim of the index is to understand the current state of circularity in Latvia and provide suggestions for municipalities to better plan their work.

Initially, we assessed municipal functions and their impact on circularity. The Circular Economy Index is calculated using two main sets of data. First, **a municipality self-assessment—**a questionnaire completed by all Latvian municipalities. Second, a population survey to determine people’s awareness of the circular economy and how they implement it in their daily lives, thus assessing to what extent the inhabitants contribute to the efforts made by municipalities.

The index is calculated using a unique methodology—the scientists created a list of circularity characteristics, with each characteristic put into one or several categories and assigned significance. The research included the use of the aforementioned data and a scientist-approved formula.

As reported, Latvian scientists have been working on the first-ever Latvian Circular Economy Index to support Latvian local governments in their movement toward smarter and more efficient operations. The initiator of the idea is CleanR Grupa, the leading environmental services company in Latvia.

The first stakeholder meeting of the Circular Economy Index was held on 31 January 2024, gathering more than 20 scientists, including university presidents and vice-presidents, who started working on the index methodology. At the beginning of the summer, prior to the active research phase, the Circular Economy Index was presented to municipalities.