The interplay of climate change and public financial management : greening public procurement

Ramsden, Alma; Grafl, Antonia

Publication type:	Working paper – expertise – study
Title:	The interplay of climate change and public financial management : greening public procurement
Authors:	Ramsden, Alma Grafl, Antonia
et. al:	No
Extent:	99
Issue Date:	2021
Publisher / Ed. Institution:	The Public Expenditure and Financial Accountability (PEFA)
Language:	English
Subject (DDC):	350: Public administration 658.1: Organization and finance
Abstract:	This paper investigates the interlinkages between public financial management (PFM) and climate change by focusing on greening public procurement (PP). The research focuses on the role of the PFM environment in mainstreaming green considerations into public procurement to ensure government spending contributes to reductions in CO2 emissions. To this end, three features of the PP function are examined – its form of organization (degree of centralization), operation mode (e-procurement), and financial conduct (Life Cycle Costing methods). For this purpose, extensive desk research and interviews with relevant stakeholders in three selected case study countries (The Netherlands, Austria, and South Korea) were conducted. The study first reveals that a certain degree of centralization is necessary to mainstream environmental considerations into the PP function and institutionalize GPP. Second, e-procurement is seen as an effective enabler for including horizontal policy goals, such as environmental considerations, in the PP function. Third, although LCC can be helpful, it is not considered crucial for greening. The following key success factors for greening PP can be derived from this research: The GPP endeavor should be planned along with the various steps of administrative reforms. Merely applying tools without a proper implementation process will not lead to success. Any modification to the PP system should be addressed through a comprehensive change process inclusive of all relevant stakeholders and the whole supply chain. A shift in paradigm concerning greening PFM practice as a whole, allowing for climate-informed decision making, is necessary. This requires embracing a holistic approach and considering a greening of the whole PFM cycle by implementing measures that help generate information on negative environmental externalities caused by public sector activities as well as on the financial and other impacts of climate change on public finances.
URI:	https://www.pefa.org/resources/interplay-climate-change-and-public-financial-management-greening-public-procurement https://digitalcollection.zhaw.ch/handle/11475/23955
License (according to publishing contract):	Licence according to publishing contract
Departement:	School of Management and Law
Organisational Unit:	Institute of Public Management (IVM)
Appears in collections:	Publikationen School of Management and Law

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Ramsden, A., & Grafl, A. (2021). The interplay of climate change and public financial management : greening public procurement. The Public Expenditure and Financial Accountability (PEFA). https://www.pefa.org/resources/interplay-climate-change-and-public-financial-management-greening-public-procurement

Ramsden, A. and Grafl, A. (2021) The interplay of climate change and public financial management : greening public procurement. The Public Expenditure and Financial Accountability (PEFA). Available at: https://www.pefa.org/resources/interplay-climate-change-and-public-financial-management-greening-public-procurement.

A. Ramsden and A. Grafl, “The interplay of climate change and public financial management : greening public procurement,” The Public Expenditure and Financial Accountability (PEFA), 2021. [Online]. Available: https://www.pefa.org/resources/interplay-climate-change-and-public-financial-management-greening-public-procurement

RAMSDEN, Alma und Antonia GRAFL, 2021. The interplay of climate change and public financial management : greening public procurement [online]. The Public Expenditure and Financial Accountability (PEFA). Verfügbar unter: https://www.pefa.org/resources/interplay-climate-change-and-public-financial-management-greening-public-procurement

Ramsden, Alma, and Antonia Grafl. 2021. “The Interplay of Climate Change and Public Financial Management : Greening Public Procurement.” The Public Expenditure and Financial Accountability (PEFA). https://www.pefa.org/resources/interplay-climate-change-and-public-financial-management-greening-public-procurement.

Ramsden, Alma, and Antonia Grafl. The Interplay of Climate Change and Public Financial Management : Greening Public Procurement. The Public Expenditure and Financial Accountability (PEFA), 2021, https://www.pefa.org/resources/interplay-climate-change-and-public-financial-management-greening-public-procurement.