A New Era of Procurement for Sustainable Cities

April 12, 2024 Communications

In Europe, 23% of greenhouse gas emissions are produced by transport. In Malta, this figure is even higher at 33%, with vehicles emerging as the primary contributors to air pollution in urban centres. Cities are at the forefront to accelerate the shift towards cleaner transport. Although the journey to sustainability might seem complex, the challenges are not insurmountable. With innovative solutions, careful planning and tools, and political leadership, public administrations can thrive amidst these challenges.

Entrepreneurs and urban mobility providers are eager to contribute to the green transition with innovative solutions; however, the path from prototype to implementation is filled with obstacles. Solution providers face significant hurdles in deploying, testing, and scaling their innovations due to the lengthy process required to access the resources of the public institutions. It often takes 18-22 months to move from prototype to testing phase. This issue highlights the necessity for a paradigm shift in how we approach problem-solving in the public sector.

With the launch of the City Innovation platform, we aim to bring the spotlight on three tools available within the topic of smart city innovations: innovation procurement, climate friendly mobility, and innovation deployment tools such as living labs, pilot territories and testbeds.

This learning platform is part of a European project run by Project Aegle Foundation and MCAST, in collaboration with VEFRESH in Latvia, aimed at enhancing the capacity of local authorities and public institutions to embrace innovation. Supported by EIT Urban Mobility, this initiative has already seen the successful organisation of two workshops with key stakeholders to foster dialogue and collaboration between local authorities, start-ups, and procurers.

This project found synergies with a parallel initiative undertaken by ICLEI Europe and PricewaterhouseCoopers, on behalf of the EU Commission, to develop a dialogue on the use of Strategic Public Procurement (Green, Social and Innovation) in all 27 EU Member States. Malta is already a participant in such a project and in fact the workshop was held in Malta in October 2023 with an online follow-up meeting in March 2024. Workshop Participants contributed to the discussions and identified challenges. It is believed that by addressing such challenges and embracing a proactive approach to innovation, Public Procurement Procedures can support Contracting Authorities in attaining strategic growth. In due course, as a result of the workshop outcomes, a draft Roadmap having the scope to develop a more strategically focused Public Procurement system shall be formulated.

We have developed a learning platform designed to facilitate the understanding of these new concepts and the practical aspect involved in the adoption of innovative testing procedures. This platform serves as an initial step for addressing the need of capacity building highlighted in the outcomes of workshops from these two projects, as well as by the Department of Contracts.

Innovation can have multiple meanings but generally innovation procurement refers to any procurement that has one or both of the following aspects:

  • Buying the process of innovation – Research and development services- with (partial) outcomes
  • Buying the outcomes of innovations

Traditionally, the focus of public procurers and contracting authorities has been on fully developed solutions. This conventional procurement approach often disregards novel and disruptive solutions that hold the potential to revolutionise our approach to the environmental challenges. Novelty products are often disregarded due to the absence of prior examples or benchmarks.

Accounting for over 14% of GDP, EU public procurement could create a huge market for innovative products and services, but its potential in this area remains underutilised. This method isn’t just about “how to buy” but “why to buy”, focusing on societal challenges such as climate change, healthcare, and sustainable economies. Innovation procurement enables public buyers to act as lead customers, providing innovative organisations the chance to test their solutions in real conditions. This, in turn, can attract further investment from both public and private sectors.

For effective testing, access to the right processes is also crucial. This can be facilitated through the deployment of living labs or testing beds that provide access to municipality infrastructure and an ecosystem for co-creation and validation with end-users. Living labs offer the advantage of fostering enhanced cooperation among customers and stakeholders engaged in innovation as well as facilitating the sharing of knowledge and services in a standardised manner.

Smart City innovation tools are vital for fostering new technologies and services that address immediate societal challenges. The European Commission also recognises the needs and aims to improve public procurement practices to promote the demand of innovative goods, services and works in Europe. By adapting procurement methodologies, we create a framework for collaboration among public and private stakeholders to test and refine innovative solutions. This, in turn, promotes knowledge exchange and nurturing an ecosystem supportive of innovation.

As we launch the City Innovation platform, we invite all stakeholders to join us in this exciting journey, the first step being to learn more about these new concepts to reimagine a new era in public service, less administrative and more forward-thinking.

If you interested to learn more about the topics, you can contact us on rishub.malta@eiturbanmobility.eu or info.contracts@gov.mt

 

About EIT Urban Mobility:

EIT Urban Mobility, an initiative of the European Institute of Innovation and Technology, strives to accelerate the transition towards sustainable and accessible urban mobility in European cities. By fostering collaborations among universities, research centres, startups, and companies, EIT Urban Mobility addresses challenges related to traffic congestion, public transportation improvement, and the promotion of sustainable transport modes. For more information visit https://www.eiturbanmobility.eu/