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Title Recommendations for GPP Incentive Mechanisms
Attached File Asia-Pacific_Green_Public_Procurement_Partnership_  File Download Date 2020-01-17
This report aims to examine the incentive mechanisms designed to promote the implementation of GPP in Korea and certain countries in the Asian region, including Japan, China and Malaysia, and also to propose measures to accelerate the adoption of GPP in Thailand, which the Thai government may wish to take into consideration.

In this report, incentives for GPP encompass all the mechanisms that are in place to encourage procurement officers, procurement agencies, producers and suppliers to consume and produce environmentally-friendly products and services. These mechanisms are limited to laws, policies and initiatives that are established by governments with a clear legal basis. Where the incentives are undertaken by the private sector, the Implementing Agency has tried to ensure that such measures have been provided consistently.

Given the difficulty of obtaining relevant data and gathering expert opinion, the main approach used is the benchmarking of the GPP policies and schemes of Korea. The official data and documents published by the governments of Japan, China, and Malaysia were used to the extent possible.

As the definition of the incentive mechanisms for GPP is still unsettled, their boundaries and methods of classification are also ambiguous. Depending on their relationship with GPP, incentives can be categorized as either direct or indirect. Alternatively, depending on the target, incentives can be divided between measures for consumers (public sector) and measures for producers

It can be seen that the term “incentive” was used in the categories of “economic incentives” and “reputational incentives”. Also, as will be emphasized through several cases in the following sections, a series of actions (labelled as “integration in processes and procedures” in the chart above) can also facilitate or force (expressed as a disincentive) the implementation of GPP by procurement officers and agencies.

This report seeks to categorize the incentive mechanisms for GPP into three categories: economic, regulatory, and reputational. Typical incentive mechanisms for each category are shown in the table below.

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