REPLACEMENT OF NON-RENEWABLE RESOURCES WITH SUSTAINABLE BIORESOURCES IN PUBLIC PROCUREMENT IN LATVIA

Abstract

Public procurement is the acquisition of products and services needed for the public sector and involves significant public budget resources. Incorporating environmental requirements into public procurement promotes both the goals of sustainable development and the principles of the circular economy. Green public procurement practices are becoming increasingly important, not only in the world, but also in Latvia. Therefore, in 2017, the Latvian Bioeconomy Strategy 2030 was approved, which envisages the development of green procurement as an important factor for the implementation of this strategy. Therefore, the aim of the present research is to study one of the sections �Replacement of non-renewable resources with sustainable bioresources in public procurement� for the implementation of the strategic goal of the Latvian Bioeconomy Strategy 2030 �Attractive business environment for entrepreneurship in bioeconomy� in Latvia. The study found that since 2017, a system of regulatory enactments has been established in Latvia, which provides for certain groups of goods and services to which green procurement is mandatory in public procurement and groups of goods and services to which green public procurement is applicable on a voluntary basis. These product groups include important products produced and processed and services provided in the bioeconomy sectors. In general, the introduction of green public procurement procedures and requirements in Latvia is to be assessed positively, as in 2017-2020 the total amount of procurement has increased 3.1 times from EUR 282 million to EUR 867 million and in 2020 accounted for 17% of the total amount of public procurement. In turn, mandatory and voluntary green public procurement of goods and services has increased 3.2 times in the analysed period and accounted for 77% of the total amount of green public procurement, which promotes the development of bioeconomy in Latvia.