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Report

Teaser, summary, work performed and final results

Periodic Reporting for period 2 - PPI4Waste (Promotion of Public Procurement of Innovation for Resource Efficiency and Waste Treatment)

Teaser

Summary

Although waste management is improving in the EU, the European economy still loses a significant amount of potential secondary raw materials.
Each European produces on average half a tonne of household waste a year, of which less than 50% is recycled/composted. Municipal waste management in Europe varies significantly between Members States: some still landfill over 80% of waste. Broad differences regarding waste production, collection and treatment exist. Effective waste management heavily depends on the development of new solutions for collection and treatment. Public procurement (PP) can stimulate the market in that direction. Public procurement of innovation (PPI), particularly, can encourage developing new, more efficient solutions for municipal waste management to meet EU objectives.
The overall objective of PPI4Waste is to support the achievement of resource efficiency, sustainable consumption and waste management throughout Europe by increasing the use of PPI via a coordinated and structured action of capacity building, networking and dissemination.
The project aims particularly at making know-how on procedures for PPI widely available and state-of-the-art solutions accessible to procurers, exploring mechanisms to overcome barriers to PPI in the waste sector.
In the end, PPI4Waste successfully delivered methodological and guidance documents illustrated by case studies from pilot partners; engaged procurers and suppliers; made recommendations for a broader uptake of PPI in the waste sector.

Work performed

Project activities were coordinated by IAT until its termination and by ACR+ for the last 4 months to complete the project. During the project, pro-active communication and dissemination of PPI4Waste outcomes (via website, newsletters, press releases, final conference, etc.) increased knowledge of PPI and waste solutions. Synergies were made with innovation projects for future exploitation. Links were established with EU and national bodies, networks and others to encourage decision makers to use PPI more systematically.
4 steps were implemented:
1. Needs assessment
Project partners identified and analysed concrete common needs of public buyers, supporting a better understanding of how innovation can address procurersâ€™ waste goals and real needs, as well as the formulation of PPI tenders. 5 common needs were prioritized: bio-waste management; plastic separation; bulky waste management; separate collection systems; decision support systems. A snapshot of targeted improvements and possible emerging solutions addressing these needs was drawn. Key experts were involved to guarantee quality of project outcomes. A Procurement Foresight Workshop enabled exchange among stakeholders and facilitated understanding of procurersâ€™ needs.

2. Market engagement
PPI4Waste brought together buyers and suppliers to address fragmentation of demand, gain a better understanding of innovative solutions replying to identified needs and instigate a technical dialogue. 2 communities, an Interest Group and a Purchasing Community, were created to gather and connect public bodies procuring innovative solutions and/or other stakeholders. 4 Meet-the-Market Events focused on common needs and 1 International State of the Art workshop took place to enhance networking and public/private exchanges and push for a greater use of PPI in waste management, highlighting interesting practices to build on.
3. Feasibility Assessment
PPI4Waste carried out a feasibility plan to uptake collaborative PPI and reduce risks associated with PPI. Based on the real situation of Mancomunidad del Sur and Zagreb, it can be used as methodological guidance by other procurers to facilitate collaborative work and potential PPI. It includes key aspects such as financial and contract modelling, and risk reduction strategy.
Training activities, exploring PPI tools and methodologies as well as presenting PPI4Waste outcomes, contributed to increase public procurersâ€™ skills about PPI practices and opportunities for further action.
4. Lessons learned
PPI4Waste published conclusions on needs, barriers, possible solutions and opportunities for public procurers, and help to set standards for PPI implementation, including in a joint or coordinated way. In particular, recommendations for policy makers, conclusions from the roadmap on coordinated procurement and contributions of partners and experts during project activities contributed to the development of future orientations for waste management and circular economy, using PPI to accelerate transition to resource efficiency.

Final results

1-Creation of critical mass of procurers of innovative solutions
PPI4Waste activities addressed the lack of aggregation of demand via its communities, which will remain active after the end of the project on the Procurement Forum.
Meet-the-Market and training events, project workshops and final conference helped purchasers exchange on needs, potential solutions and experience on PPI. Several partners keep engaging public authorities on the strategic use of PP for the purchasing of innovative solutions after the end of PPI4Waste.
2-Creation of new markets in resource efficiency (short/medium term)
Identifying 5 common needs contributed to provide suppliers with a better knowledge about public authoritiesâ€™ challenges and priorities for the coming years and incentivise suppliers to develop appropriate solutions.
The concrete case studies of Mancomunidad and Zagreb give the market a clear view of their challenges and ambitions, facilitating suppliersâ€™ involvement in the case of future PPI.
Technical dialogue permitted to improve knowledge on innovative solutions and inform suppliers of buyerâ€™s needs and challenges.
3-Leverage of additional investment in R&I
PPI4Waste promoted PPI implementation and crossed offer and demand, mainly via the meet-the-market events, experts involvement, exchanges among waste stakeholders, public staff training, and dissemination activities.
PPI4Waste promoted Horizon 2020 and other funding opportunities for innovation, including EU funded projects focusing on solutions related to common needs.
4-Contribution of public sector innovation and increased mobilisation of SMEs and industry
PPI4Waste opened dialogue which was almost inexistent before and mobilised public and private sector during its events.
PPI4Waste recommendations focus on functional specifications and needs, giving more importance to splitting tenders into smaller lots, which usually favours SMEs.
5-Move from product purchase to service delivery
The work on needs identification and functional specifications emphasises service delivery, easier to adapt to the needs, rather than product selling. Exchanges with experts, engagement of procurers and suppliers and trainings highlighted benefits of moving from products to services.
Targeted improvement in the waste hierarchy helped the 2 pilot partners to focus on efficiency and progressive improvement, more easily achieved via service delivery. The feasibility plan also supported transition from product to services on their territories.
As a whole, project activities have positive socio-economic impacts on waste management (from jobs, costs and climate perspectives): it contributes to a long-term strategy to foster innovation and progressively move up in the waste hierarchy. Some innovations will save costs immediately, whereas others will require an initial investment to realize longer-term gains.