AI & sustainable procurement: the public sector should first learn what it already owns

While carrying out research on the impact of digital technologies for public procurement governance, I have realised that the deployment of artificial intelligence to promote sustainability through public procurement holds some promise. There are many ways in which machine learning can contribute to enhance procurement sustainability.

For example, new analytics applied to open transport data can significantly improve procurement planning to support more sustainable urban mobility strategies, as well as the emergence of new models for the procurement of mobility as a service (MaaS).* Machine learning can also be used to improve the logistics of public sector supply chains, as well as unlock new models of public ownership of, for example, cars. It can also support public buyers in identifying the green or sustainable public procurement criteria that will deliver the biggest improvements measured against any chosen key performance indicator, such as CO2 footprint, as well as support the development of robust methodologies for life-cycle costing.

However, it is also evident that artificial intelligence can only be effectively deployed where the public sector has an adequate data architecture.** While advances in electronic procurement and digital contract registers are capable of generating that data architecture for the future, there is a significant problem concerning the digitalisation of information on the outcomes of past procurement exercises and the current stock of assets owned and used by the public sector. In this blog, I want to raise awareness about this gap in public sector information and to advocate for the public sector to invest in learning what it already owns as a potential major contribution to sustainability in procurement, in particular given the catalyst effect this could have for a more circular procurement economy.

Backward-looking data as a necessary evidence base

It is notorious that the public sector’s management of procurement-related information is lacking. It is difficult enough to have access to information on ‘live’ tender procedures. Accessing information on contract execution and any contractual modifications has been nigh impossible until the very recent implementation of the increased transparency requirements imposed by the EU’s 2014 Public Procurement Package. Moreover, even where that information can be identified, there are significant constraints on the disclosure of competition-sensitive information or business secrets, which can also restrict access.*** This can be compounded in the case of procurement of assets subject to outsourced maintenance contracts, or in assets procured under mechanisms that do not transfer property to the public sector.

Accessing information on the outcomes of past procurement exercises is thus a major challenge. Where the information is recorded, it is siloed and compartmentalised. And, in any case, this is not public information and it is oftentimes only held by the private firms that supplied the goods or provided the services—with information on public works more likely to be, at least partially, under public sector control. This raises complex issues of business to government (B2G) data sharing, which is only a nascent area of practice and where the guidance provided by the European Commission in 2018 leaves many questions unanswered.*

I will not argue here that all that information should be automatically and unrestrictedly publicly disclosed, as that would require some careful considerations of the implications of such disclosures. However, I submit that the public sector should invest in tracing back information on procurement outcomes for all its existing stock of assets (either owned, or used under other contractual forms)—or, at least, in the main categories of buildings and real estate, transport systems and IT and communications hardware. Such database should then be made available to data scientists tasked with seeking all possible ways of optimising the value of that information for the design of sustainable procurement strategies.

In other words, in my opinion, if the public sector is to take procurement sustainability seriously, it should invest in creating a single, centralised database of the durable assets it owns as the necessary evidence base on which to seek to build more sustainable procurement policies. And it should then put that evidence base to good use.

More circular procurement economy based on existing stocks

In my view, some of the main advantages of creating such a database in the short-, medium- and long-term would be as follows.

In the short term, having comprehensive data on existing public sector assets would allow for the deployment of different machine learning solutions to seek, for example, to identify redundant or obsolete assets that could be reassigned or disposed of, or to reassess the efficiency of the existing investments eg in terms of levels of use and potential for increased sharing of assets, or in terms of the energy (in)efficiency derived from their use. It would also allow for a better understanding of potential additional improvements in eg maintenance strategies, as services could be designed having the entirety of the relevant stock into consideration.

In the medium term, this would also provide better insights on the whole life cycle of the assets used by the public sector, including the possibility of deploying machine learning to plan for timely maintenance and replacement, as well as to improve life cycle costing methodologies based on public-sector specific conditions. It would also facilitate the creation of a ‘public sector second-hand market’, where entities with lower levels of performance requirements could acquire assets no longer fit for their original purpose, eg computers previously used in more advanced tasks that still have sufficient capacity could be repurposed for routine administrative tasks. It would also allow for the planning and design of recycling facilities in ways that minimised the carbon footprint of the disposal.

In the long run, in particular post-disposal, the existence of the database of assets could unlock a more circular procurement economy, as the materials of disposed assets could be reused for the building of other assets. In that regard, there seem to be some quick wins to be had in the construction sector, but having access to more and better information would probably also serve as a catalyst for similar approaches in other sectors.

Conclusion

Building a database on existing public sector-used assets as the outcome of earlier procurement exercises is not an easy or cheap task. However, in my view, it would have transformative potential and could generate sustainability gains not only aimed at reducing the carbon footprint of future public expenditure but, more importantly, at correcting or somehow compensating for the current environmental impacts of the way the public sector operates. This could make a major difference in accelerating emissions reductions and should consequently be a matter of sufficient priority for the public sector to engage in this exercise. In my view, it should be a matter of high priority.

* A Sanchez-Graells, ‘Some public procurement challenges in supporting and delivering smart urban mobility: procurement data, discretion and expertise’, in M Finck, M Lamping, V Moscon & H Richter (eds), Smart Urban Mobility – Law, Regulation, and Policy, MPI Studies on Intellectual Property and Competition Law (Berlin, Springer, 2020) forthcoming. Available on SSRN: http://ssrn.com/abstract=3452045.

** A Sanchez-Graells, ‘Data-driven procurement governance: two well-known elephant tales’ (2019) Communications Law, forthcoming. Available on SSRN: https://ssrn.com/abstract=3440552.

*** A Sanchez-Graells, ‘Transparency and competition in public procurement: A comparative view on a difficult balance’, in K-M Halonen, R Caranta & A Sanchez-Graells (eds), Transparency in EU Procurements: Disclosure within public procurement and during contract execution, vol 9 EPL Series (Edward Elgar 2019) 33-56. Available on SSRN: https://ssrn.com/abstract=3193635.

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This blog was written by Cabot Institute member Professor Albert Sanchez-Graells, Professor of Economic Law (University of Bristol Law School).

Albert Sanchez-Graells

Forest accounting rules put EU’s climate credibility at risk, say leading experts

**Article re-posted from EURACTIV **


Forest mitigation should be measured using a scientifically-objective approach, not allowing countries to hide the impacts of policies that increase net emissions, writes a group of environmental scientists led by Dr Joanna I House.

Dr Joanna I House is a reader in environmental science and policy at the Cabot Institute, University of Bristol, UK. She co-signed this op-ed with other environmental scientists listed at the bottom of the article.

From an atmospheric perspective, a reduction in the forest sink leads to more CO2 remaining in the atmosphere and is thus effectively equivalent to a net increase in emissions. [Yannik S/Flickr]

When President Trump withdrew from the Paris Agreement, the EU’s Climate Commissioner, Miguel Arias Cañete spoke for all EU Member States when he said that, “This has galvanised us rather than weakened us, and this vacuum will be filled by new broad committed leadership.” The French President, Emmanuel Macron, echoed him by tweeting, “Make our planet great again”.

But as the old saying goes, ‘If you talk the talk, you must walk the walk,’ and what better place to start than the very laws the EU is currently drafting to implement its 2030 climate target under the Paris Agreement. This includes a particularly contentious issue that EU environment leaders will discuss on 19 June, relating to the rules on accounting for the climate impact of forests.

Forests are crucial to limiting global warming to 2 degrees Celsius. Deforestation is responsible for almost one tenth of anthropogenic carbon dioxide (CO2) emissions, while forests remove almost a third of CO2 emissions from the atmosphere.

In the EU, forests currently grow more than they are harvested.  As a result, they act as a net ‘sink’ of CO2 removing more than 400 Mt CO2 from the atmosphere annually, equivalent to 10% of total EU greenhouse gas (GHG) emissions.

New policies adopted or intended by Member States will likely drive them to harvest more trees (e.g. for the bioeconomy and bioenergy), reducing the sink. The controversy is, in simple terms, if forests are taking up less CO2 due to policies, should this be counted?

Based on lessons learnt from the Kyoto Protocol, the European Commission proposed that accounting for the impacts of forests on the atmosphere should be based on a scientifically robust baseline. This baseline (known as the ‘Forest Reference Level’) should take into account historical data on forest management activities and forest dynamics (age-related changes). If countries change forest management activities going forward, the atmospheric impact of these changes would be fully accounted based on the resulting changes in GHG emissions and sinks relative to the baseline. This approach is consistent with the GHG accounting of all other sectors.

Subsequently, some EU member states have proposed that any increase in harvesting, potentially up to the full forest growth increment, should not be penalised. This would be achieved by including this increase in harvesting, and the related change in the net carbon sink, in the baseline.

As land-sector experts involved in scientific and methodological reports (including for the Intergovernmental Panel on Climate Change, IPCC), in the implementation of GHG inventory reports, and in science advice to Governments, we have several scientific concerns with this approach.

From an atmospheric perspective, a reduction in the forest sink leads to more CO2 remaining in the atmosphere and is thus effectively equivalent to a net increase in emissions. This is true even if forests are managed “sustainably”, i.e. even if harvest does not exceed forest growth.

This is further complicated as the issues are cross-sectoral. Higher harvest rates may reduce the uptake of CO2 by forests, but use of the harvested wood may lead to emissions reductions in other sectors e.g. through the substitution of wood for other more emissions-intensive materials (e.g. cement) or fossil energy. These emission reductions will be implicitly counted in the non-LULUCF sectors.  Therefore, to avoid bias through incomplete accounting, the full impact of increased harvesting must be also accounted for.

Including policy-related harvest increases in the baseline could effectively hide up to 400 MtCO2/yr from EU forest biomass accounting compared to the “sink service” that EU forests provide today, or up to 300 MtCO2/yr relative to a baseline based on a scientific approach (up to two thirds of France’s annual emissions).

If policy-related impacts on net land carbon sinks are ignored or discounted, this would:
 

  • Hamper the credibility of the EU’s bioenergy accounting: Current IPCC guidance on reporting emissions from bioenergy is not to assume that it is carbon neutral, but rather any carbon losses should to be reported under the ‘Land Use, Land-Use Change and Forestry’ (LULUCF) sector rather than under the energy sector (to avoid double counting). EU legislation on bioenergy similarly relies on the assumption that carbon emissions are fully accounted under LULUCF.
  • Compromise the consistency between the EU climate target and the IPCC trajectories. The EU objective of reducing GHG emissions of -40% by 2030 (-80/95% by 2050) compared to 1990 is based on the IPCC 2°C GHG trajectory for developed countries. This trajectory is based not just on emissions, but also on land-sinks. Hiding a decrease in the land sink risks failure to reach temperature targets and would require further emission reductions in other sectors to remain consistent with IPCC trajectories.
  • Contradict the spirit of the Paris Agreement, i.e., that “Parties should take action to conserve and enhance sinks”, and that Parties should ensure transparency in accounting providing confidence that the nationally-determined contribution of each country (its chosen level of ambition in mitigation) is met without hiding impacts of national policies.
  • Set a dangerous precedent internationally, potentially leading other countries to do the same (e.g. in setting deforestation reference levels). This would compromise the credibility of the large expected forest contribution to the Paris Agreement.

The Paris Agreement needs credible and transparent forest accounting and EU leaders are about to make a decision that could set the standard.   Including policy-driven increases in harvest in baselines means the atmospheric impacts of forest policies will be effectively hidden from the accounts (while generating GHG savings in other sectors). Basing forest accounting on a scientifically-objective approach would ensure the credibility of bioenergy accounting, consistency between EU targets and the IPCC 2°C trajectory, and compliance with the spirit of Paris Agreement. The wrong decision would increase the risks of climate change and undermine our ability to “make the planet great again”.

Disclaimer: the authors express their view in their personal capacities, not representing their countries or any of the institutions they work for.

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Signatories:

Joanna I House, Reader in Environmental Science and Policy, Co-Chair Global Environmental Change, Cabot Institute, University of Bristol, UK
Jaana K Bäck, Professor in Forest – atmosphere interactions, Chair of the EASAC Forest multifunctionality report, University of Helsinki, Finland
Valentin Bellassen, Researcher in Agricultural and Environmental Economics, INRA, France
Hannes Böttcher, Senior Researcher at Oeko-Institut.
Eric Chivian M.D., Founder and Former Director, Center for Health and the Global Environment Harvard Medical School
Pep Canadell, Executive Director of the Global Carbon Project
Philippe Ciais, scientist at Laboratoire des Sciences du Climat et de l’Environnement, Gif sur Yvette, France
Philip B. Duffy, President and Executive Director Woods Hole Research Center, USA
Sandro Federici, Consultant on MRV and accounting for mitigation in the Agriculture and land use sector
Pierre Friedlingstein, Chair, Mathematical Modelling of Climate Systems, University of Exeter, UK.
Scott Goetz, Professor, Northern Arizona University
Nancy Harris, Research Manager, Forests Program, World resources Institute.
Martin Herold, Professor for Geoinformation Science and Remote Sensing and co-chair of Global Observations of Forest Cover and Land Dynamics (GOFC-GOLD), Wageningen University and Research, The Netherlands
Mikael Hildén, Professor, Climate Change Programme and the Resource Efficient and Carbon Neutral Finland Programme, Finnish Environment Institute and the Strategic Research Council, Finland
Richard A. Houghton, Woods Hole Research Centre USA
Tuomo Kalliokoski University of Helsinki, Finland
Janne S. Kotiaho, Professor of Ecology, University of Jyväskylä, Finland
Donna Lee, Climate and Land Use Alliance
Anders Lindroth, Lund University, Sweden
Jari Liski, Research Professor, Finnish Meteorological Institute, Finland
Brendan Mackey, Director, Griffith Climate Change Response Program, Griffith University, Australia
James J. McCarthy, Harvard University, USA
William R. Moomaw, Co-director Global Development and Environment Institute, Tufts University, USA
Teemu Tahvanainen, University of Eastern Finland
Olli Tahvonen, Professor forest economics and policy, University of Helsinki, Finland
Keith Pausitan, University Distinguished Professor, Colorado State University, USA
Colin Prentice, AXA Chair in Biosphere and Climate Impacts, Imperial College London, UK
N H Ravindranath, Centre for Sustainable Technologies (CST), Indian Institute of Science, India
Laura Saikku, Senior Scientist, Finnish Environment Institute
Maria J Sanchez, Scientific Director of BC3 (Basque Center for Climate Change), Spain
Sampo Soimakallio, Senior Scientist, Finnish Environment Institute
Zoltan Somogyi, Hungarian Forest Research Institute, Budapest, Hungary
Benjamin Smith, Professor of Ecosystem Science, Lund University, Sweden
Pete Smith, Professor of Soils & Global Change, University of Aberdeen, UK
Francesco N. Tubiello, Te Leader, Agri-Environmental Statistics, FAO
Timo Vesala, Professor of Meteorology, University of Helsinki, Finland
Robert Waterworth
Jeremy Woods, Imperial College London, UK
Dan Zarin, Climate and Land Use Alliance