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2. Sustainable Public Procurement (Spp) Master Integrating sustainability standards into public procurement process : a comparative analysis between Germany and Viet nam LAMBERT, Siti Rubiah Abstract Integrating sustainability standards into public procurement process - a comparative analysis between Germany and Viet Nam Reference LAMBERT, Siti Rubiah. Integrating sustainability standards into public procurement process : a comparative analysis between Germany and Viet nam. Master : Univ. Genève, 2020 Available at: http://archive-ouverte.unige.ch/unige:132372 Disclaimer: layout of this document may differ from the published version. 1 / 1 Masters in Standardization, Social Regulation and Sustainable Development Faculty of Social Sciences – University of Geneva Master Thesis Integrating Sustainability Standards into Public Procurement Process A comparative analysis between Germany and Viet Nam Submitted by LAMBERT, Siti Rubiah Under the supervision of: Professor Reinhard Weissinger University of Geneva / ISO Geneva School of Social Sciences Second Reader: Santiago FernandezdeCordoba Senior Economist/ Trade Expert United Nations Conference on Trade and Development (UNCTAD) I certify that the work presented here is, to the best of my knowledge and belief, original and the result of my own investigations, except as acknowledged, and has not been submitted, either in part or whole, for a degree at this or any other University. 7 January 2020 1 Masters in Standardization, Social Regulation and Sustainable Development Faculty of Social Sciences – University of Geneva Master Thesis TABLE OF CONTENTS INTRODUCTION .......................................................................................................................................................... 3 1. SUSTAINABILITY STANDARDS ........................................................................................................................ 6 1.1 DEFINITIONS ............................................................................................................................................................................... 8 1.1.1 Standard .................................................................................................................................................................................. 9 1.2 SUSTAINABILITY STANDARDS TERMINOLOGY ................................................................................................................ 9 1.3 SUSTAINABILITY STANDARDS AND ITS RELATIONSHIP WITH THE SUSTAINABLE DEVELOPMENT GOALS (SDGS) 13 2. SUSTAINABLE PUBLIC PROCUREMENT (SPP) ...................................................................................... 17 2.1. SUSTAINABLE DEVELOPMENT GOALS AND SPP .......................................................................................................... 18 2.2. INTERNATIONAL SUSTAINABLE PUBLIC PROCUREMENT FRAMEWORKS .............................................................. 19 2.2.1 The Organisation for Economic Co-operation and Development (OECD) Recommendation of the Council on Public Procurement ............................................................................................................................................. 20 2.2.2. World Trade Organization Government Procurement Agreement - WTO GPA .................................... 21 2.2.3. The World Bank’s Sustainable Procurement Guidance ................................................................................... 22 2.2.4. European Union (EU) Green Public Procurement (GPP) ............................................................................. 24 2.2.5. UN Environment 10YFP Sustainable Public Procurement Programme ................................................... 26 2.2.6. International Organization of Standardization (ISO) 20400:2017 Sustainable Procurement Guideline ......................................................................................................................................................................................... 28 2.3. BARRIERS OF SPP .................................................................................................................................................................. 31 2.4. SUSTAINABILITY STANDARDS AS AN INSTRUMENT TO DRIVE EFFECTIVENESS IN SPP ..................................... 33 3. COMPARATIVE ANALYSIS BETWEEN GERMANY AND VIET NAM ............................................. 34 3.1 THE MATURITY OF SPP IN GERMANY .............................................................................................................................. 37 ............................................................................................................................................................................................................. 37 3.1.1 Political Willingness ........................................................................................................................................................ 39 3.1.2 Adoption of a global strategy ....................................................................................................................................... 41 3.1.3 Knowledge of SPP ............................................................................................................................................................ 42 3.1.4 Legal Framework ............................................................................................................................................................. 44 3.1.5 Monitoring ........................................................................................................................................................................... 46 3.1.6 Market Readiness ............................................................................................................................................................. 47 3.2 THE MATURITY OF SPP IN VIET NAM .............................................................................................................................. 52 ............................................................................................................................................................................................................. 52 3.2.1 Political Willingness ........................................................................................................................................................ 53 3.2.2 Adoption of a global strategy ....................................................................................................................................... 56 3.2.3 Knowledge of SPP ............................................................................................................................................................ 57 3.2.4 Legal Framework ............................................................................................................................................................. 58 3.2.5 Monitoring ........................................................................................................................................................................... 60 3.2.6 Market Readiness ............................................................................................................................................................. 61 4. EVALUATION OF THE COMPARATIVE ANALYSIS ............................................................................. 62 5. CONCLUSIONS ..................................................................................................................................................... 73 6. BIBLIOGRAPHY ................................................................................................................................................... 74 7. ANNEXURES .......................................................................................................................................................... 78 2 Masters in Standardization, Social Regulation and Sustainable Development Faculty of Social Sciences – University of Geneva Master Thesis Introduction “If the world continues to consume as many resources as it currently does, we would need two planets. This shows that we urgently need to change course. Public Procurement is an important tool. In Germany alone, the public sector buys products and services valued around 300 billion euros, if we align these public investments with sustainability criteria in Germany and around the world, we will take a major step forward towards a more social and ecological world. The state is a role model in the area of public procurement and has the ability to develop new markets through its buyer power and to help innovative products achieve breakthroughs. In Germany, we can do much more and, as the Federal Government, we can lead the way. We are already well positioned in certain areas such as timber and energy-efficient devices; in other areas, however, there is still room for improvement, for example as regards the demand for recycled materials.” Rita Schwarzelühr-Sutter1, Parliamentary State Secretary, German Federal Environment Ministry. The share of public procurement represents on average, 12% of the Gross Domestic Product (GDP) in OECD countries (OECD, 2017). In Europe alone, it was estimated that almost €1,8 trillion is spent on public procurement on an annual basis, which is about 14% of European Union (EU) GDP (EU, 2016). The estimation for developing countries seem to count even higher: up to 30% of the
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