News

ESMAP Report Highlights Benefits of Energy Efficient Purchasing Programmes

10 October 2012: The Energy Sector Management Assistance Programme (ESMAP) of the World Bank has released a technical report, titled “Public Procurement of Energy Efficient Products: Lessons from Around the World,” emphasizing the benefits of energy efficient purchasing (EEP) programmes in the public sector.

The report presents findings collected from a number of countries and details positive monetary impacts of procurement policies on the public sector. Describing the range of EEP approaches including product bans, broader green or sustainable procurement policies that have energy efficiency as a core element, and energy efficient and green building policies, the report lists some of the challenges governments have in adopting EEP policies. These include a lack of incentives, limited financial resources, restrictive procurement policies and procedures, and weak governance systems.

The report observes that, despite these challenges, the EEP is a popular policy instrument, even though some governments lack sufficient enforcement mechanisms to ensure strict adherence to the policy. The report also notes the growing number of developing countries adopting EEP programmes, as well as a move by some to adopt green public procurement (GPP) or sustainable procurement policies.

The report notes that, for EEP to succeed, governments should, inter alia, consider creating clearer policies, create tools to support lower transaction costs, and create incentives to address financial gaps and behavioural resistance. [Public Procurement of Energy Efficient Products: Lessons from Around the World] [Video of panel introducing publication]