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Analysis

Climate Action and the future of SPP

11 June 2019

Climate emergency

Four years from the Paris agreement and the implications of the need to drive deep decarbonisation are setting in, now discussed by central banks and finance ministries. At the recent Spring Meetings of the World Bank Group and International Monetary Fund, Finance Ministers from more than twenty countries launched a new coalition aimed at driving stronger collective action on climate change and its impacts. How fast can they provide tangible results to drive global green investment? And how will public procurement be affected by the new climate goals, specifically coalition of finance ministers for climate action?


Helsinki Principles

The newly formed Coalition of Finance Ministers for Climate Action endorsed a set of six common principles, known as the “Helsinki Principles,” that promote national climate action, especially through fiscal policy and the use of public finance. The number of countries involved now totals 20 countries, with Costa Rica joining in April 2019. World Bank CEO, Kristalina Georgieva emphasised the crucial role procurement has to play in climate-resilient economy of the future and that the coalition “demonstrates new levels of ambition from decision-makers in the fiscal policy arena and provides an important platform for Finance Ministers to share best practice on the jobs and growth benefits of the new climate economy.”


Green New Deal vs. greed

Facing the reality of the climate emergency will require collaboration of the collective, public and private interests and beyond, to implement the measures required; from putting a price on carbon, to soft and hard adaptation. In Helsinki, where 100% of procurement processes will integrate sustainability by 2020, a network based organisation called KEINO was created to support Finnish public contracting authorities with the development of sustainable and innovative procurement. It is comprised of key stakeholders working towards the objectives set for public procurement across all governmental levels in Finland. It is funded by The Ministry of Economic Affairs and Employment (MEAE), and jointly steered by a conclave of six ministries. A proven way to kickstart the circular economy is to generate demand by launching a ‘green deal’ between the government, cities and companies on green public procurement.” These deals include an accompanying training programme where purchasing managers learn how to procure in a circular way.


Going forward

As Christian Aid's global climate advisor, Dr Kat Kramer urged: "vague incrementalism [...] is too little too late. We need rapid and radical action on climate, not financial risk assessments." Will states avoid or embrace the opportunity to be pioneers in the transition for planet friendly procurement?