The non-binding green deal agreement for emission-free construction sites was published in autumn 2020. The goal of the agreement is to reduce emissions from contracting entities’ construction sites over a long period of time. So far, the agreement has been signed by six major public contracting entities. Anyone can apply the principles of the concept without being a green deal member, but working with others provides more impactful results which are easier for organisations to anticipate.

This solution is right for you if

• you are in charge of construction at a green deal member organisation or work as an expert in construction projects and you are looking for more information about environmental criteria;

• you work in an expert role at a non-green deal member organisation and you are looking for examples or more information about environmental criteria;

• you work as a contractor and you want to learn more about emission-free methods to apply on a construction site; or

• you want to learn more about monitoring and verifying the machinery and equipment used on emission-free work sites.

BASIC FACTS

• Project parties: KEINO Competence Centre for Sustainable and Innovative Public Procurement, City of Helsinki, City of Espoo, City of Vantaa, City of Turku, Senate Properties, Helsinki Region Environmental Services HSY
• New public sector organisations are encouraged to join the Agreement on a broad front.
• Time frame: 2020-2030

The green deal agreement for emission-free construction sites launched a long-term joint development project towards less emissions from construction sites

Made between the Ministry of the Environment and public contracting entities, the Agreement contributes to Finland’s goal of becoming carbon neutral by 2035. Procurement decisions can have an impact on a significant proportion of emissions from construction sites and support the achievement of the target of net zero carbon. The green deal agreement focuses on emission category requirements for heavy machinery and transport as well as promoting low-emission motive power types. The purpose of the agreement is to increase the proportion of low-emission heavy machinery and to promote the introduction of new practices and tools both on construction sites and in procurement processes.

The concept supports the achievement of the agreement’s targets while helping other organisations reduce emissions

The concept of emission-free construction sites has been drawn up as part of the green deal agreement for emission-free construction sites and the HNRY project. The concept supports the implementation of the green deal agreement, but it can also be used by non-green deal members.

The concept provides an overview of principles and practices which are used to reduce emissions from construction sites. The goal of the concept is to reduce emissions, harmful exhaust gases and noise from construction sites. The concept does not cover aspects such as the carbon footprint of building materials or life cycle emissions from construction.

Where applicable, the concept of emission-free construction sites can be used for example in the following applications done in-house or contracted by contracting entities:

• in-house maintenance works;
• in-house building and construction (infrastructure and housing); and
• tendered maintenance works and projects.

A more detailed framework has been defined as part of the organisations’ own strategies and, for example, in the implementation plans of the contracting entities of the member organisations of the green deal agreement for emission-free construction sites.

The concept of emission-free construction sites supports the non-binding green deal agreement for emission-free construction sites made in 2020. Contracting entities which have not signed the Agreement can use the tools provided by the concept to reduce emissions from their construction sites.

There are three types of environmental requirements laid down in the concept:

1. Minimum requirements for heavy machinery based on the green deal agreement.
2. Methods to promote alternative motive power types (electricity, biogas, hydrogen).
3. Other environmental requirements, such as environmental management systems and contract-specific environmental plans.

The concept also contains guidelines and recommendations on how heavy machinery operators can adopt low-emission practices.

Great results through engaging in market dialogue and applying the principles of the concept

The concept does not include direct recommendations on which environmental criteria to adopt, and each organisation must adapt the content of the concept to fit their individual targets and market environment.

The development of the green deal agreement and the concept of emission-free construction sites was boosted by empirical knowledge gained from the low-emission pilot construction sites of the cities of Helsinki and Espoo. Information gained from the pilot projects has been used to develop specifics such as procurement criteria, monitoring, fleet lists and market dialogue. Organisations wishing to promote skills on emission-free construction sites can apply the concept’s environmental requirements and practices in any pilot projects or contracts they might have.

Each year, the member organisations of the green deal agreement for emission-free construction sites engage in joint market dialogues, in which they discuss the requirements and their scopes in more detail. By joining the green deal agreement for emission-free construction sites, contracting entities can participate in the joint development project.

TAKE-HOME MESSAGES

• Goals are the first step towards the implementation stage and only the beginning of the long-term development work.

• Defining the final environmental criteria requires engaging in dialogue and working with companies. If necessary, there is room for adjustments to be made to ensure that the requirements are relevant and that they can be met.

• Anyone can apply the principles of the concept without being a green deal member, but working with others provides more impactful results which are easier for organisations to anticipate.

• Cities/municipalities/organisations can pick and choose the practices that best suit their procurement strategies and construction projects from the concept.

Publications

Concept of emission-free construction sites, version 1.0

The joint concept of emission-free construction sites and procurement criteria will be developed further as the progressive targets laid down in agreement are met. Member organisations provide training to their customers and other key target groups in the application of the principles of the concept of emission-free construction sites and joint procurement criteria.

The model explored ways to reduce carbon emissions from machines used in cargo port operations, using Vuosaari Harbour in Helsinki as an example. The key themes were low-carbon power sources, the contribution of different partners and the roadmap for reducing emissions from machine operations.

This solution is right for you if

• you are interested in ways and means of reducing carbon emissions from machines, especially in the context of cargo ports;

• you are working on reducing carbon emissions from port machines or port operations;
• you want to promote low-carbon machines in a company or in an industrial area.

BASIC FACTS

• Location: Vuosaari Harbour, Eastern Helsinki
• Time span: 2019–2021
• Organisers: Saara Pellikka from the City of Helsinki’s environmental services was responsible for implementing the concept in close cooperation with VTT Technical Research Centre of Finland, the Port of Helsinki and the following key partners: Finnsteve Oy Ab, Steveco Oy, Multi-Link Terminals Ltd Oy, Oy M. Rauanheimo Ab / Oy Adolf Lahti Yxpila Ab, Container-Depot Ltd Oy / Arctic Container Oy, SA-TU Logistics Oy, Nurminen Logistics Oyj, Alfons Håkans, Konecranes Finland, Kalmar / Cargotec, Royal Terberg Group and Port of Gothenburg (reference site).

Companies interviewed to canvass their commitment and areas for development

The City of Helsinki’s environmental services interviewed companies in Vuosaari Harbour in late 2019 and early 2020 to explore areas for improvement in terms of reducing emissions from machines. A key finding was that companies want to reduce emissions from machinery, but new solutions need to be cost-effective and easy to operate in the port environment. Biofuels and electrification, in particular, were brought up as potential means to achieve this. A summary was prepared on the basis of the interviews, and the following measures were proposed:

1. Increasing companies’ understanding of new power sources and emissions reduction solutions that are suitable for port operations (including emission- and cost-efficiency).
2. Exploring the types of control measures that the Port of Helsinki could use to encourage companies that operate in the area to use new power systems, and assessing the infrastructure capacity and the necessary changes if a new source of power were to be adopted on a large scale.

The report describes how the emission targets for machines can be achieved

VTT examined measures that would reduce CO₂ emissions from the port’s machines by 60% by 2035 (in Finnish: Selvitys ja tiekartta Vuosaaren sataman työkoneliikenteen päästövähennyksille). The study suggests that measures should focus on straddle carriers and terminal tractors, as these types of machine were estimated to generate more than three-quarters of emissions from machines in the area.

It would seem impossible to meet the emission targets without some degree of electrification of the straddle carriers or use of renewable fuel. Electrification proved to be a cost-effective solution for energy-intensive machines with a high utilisation rate, such as straddle carriers. The power grid in the port area would appear to be sufficient for operating battery-operated straddle carriers and terminal tractors. The simultaneous operation of the port’s 33 straddle carriers would require approximately nine 600 kW fast charging points, which would mean an investment of approximately 3–5 million euros.

Incentives for the Port of Helsinki would include compensation for the additional cost of renewable fuel, a discount based on the utilisation rate of electrical machinery and leasing electrical machines and charging infrastructure to operators for testing purposes. The roadmap for emissions reductions in 2021–2035 was presented as a key output.

Piloting of new technologies is at the heart of the carbon roadmap

The carbon roadmap for machine logistics paves a way for the use of market-based low-carbon solutions in the Vuosaari Harbour area. It was proposed that a pilot project should be launched to make it easier for port operators to switch to fully electric machinery and start using renewable fuel so that they could learn how to use new technologies. Operators would test some electric machines, such as straddle carriers and terminal tractors, and the use of renewable fuel in machines of different ages would also be demonstrated in the project. The path to low-carbon machines would have three phases:

1. Pre-planning of the piloting project, 2021–2022
2. Piloting new technologies, 2022–2027
3. Gradual transition to market-based operations, 2027–2035

The roadmap was drawn up by VTT as part of the study and roadmap project on emissions reductions in Vuosaari Harbour.

Machinery emission calculation using a calculation model and training video

The Excel-based calculation model can be used to calculate the carbon emissions and total operating costs of machines and to compare the cost-effectiveness of emissions reduction with different power source options (EUR/tonnes of CO₂). The model takes into account both direct emissions (TTW, tank-to-wheel) and lifecycle emissions (WTW, well-to-wheel) from machines. The model is particularly suitable for stevedoring companies that own port machinery, but it can also be applied to other types of machinery, provided that input data is added. The model has two parts:

• The generic model that calculates emissions and costs for an individual year.
• The scenario model that includes the generic model and also calculates emissions for 2019–2035.

The calculation model and an introductory video have been made by VTT as part of the study and roadmap project on emissions reductions in Vuosaari Harbour.

Training video on the use of the model for calculating emissions and costs generated by machines (in Finnish):

TAKE-HOME MESSAGES

• The port environment has special requirements and offers opportunities for measures to reduce emissions from machines.

• The most suitable emissions reduction solutions are found by optimising them according to how much a machine is used and how practical as well as emission- and cost-efficient they are.

• Piloting would make it possible to find the most efficient technologies, operating methods and service models for the port environment, and it would pave the way for the launch of new low-carbon solutions to the market.

Construction sites not only cause significant amounts of greenhouse gas emissions but also harmful local emissions. The boulevard of Kulosaaren puistotie was one of the pilot sites in the emission-free infrastructure construction sites project of the City of Helsinki. The objective of these pilot sites was to reduce emissions from construction sites. The machinery and equipment used on the site included four fully electric heavy machinery units, while the rest of the machinery was powered by renewable HVO diesel.

This solution is right for you if

• you buy infrastructure construction services;
• you represent an infrastructure company/contractor; or
• you want to reduce emissions from your organisation’s construction sites.

BASIC FACTS

• Location: Helsinki, Kulosaari – the boulevard of Kulosaaren puistotie was converted into a shared in-roadway bikeway, becoming part of the Itäbaana express bike route, one of the main bike routes to the city centre
• Time frame: 12/2019 (dialogue with the market) – 4/2021 (project completion)
• Project parties: City of Helsinki, Urban Environment Division, Housing and Environment; contractor: VM Suomalainen Oy

A carbon-neutral Helsinki can only be achieved by also reducing emissions from construction sites

Emissions from heavy machinery and equipment used on construction sites as well as heavy goods vehicles account for a significant proportion of carbon dioxide emissions generated in cities and municipalities. Moreover, they also generate harmful local emissions, particles and noise that impair air quality in the area. In densely built urban environments, the harmful effects of construction sites are even greater.

Despite this backdrop, current legislation does not give decision-makers enough power to address construction sites’ harmful effects on climate and health, and greenhouse gas emissions caused by heavy machinery and equipment are not regulated. The City of Helsinki has recognised this issue, and one of the goals of the Carbon-neutral Helsinki 2035 Action Plan is to reduce greenhouse gas emissions from construction sites with initiatives such as piloting the use of emission-free heavy machinery and equipment in the City’s infrastructure projects.

The City of Helsinki has also actively participated in international campaigns and projects to promote emission-free construction sites. European cities have exchanged information and experiences for example in the Zero-Emission Construction Sites working group of the Big Buyers Initiative funded by the European Commission and in the E-ZEMCONS project funded by EIT Climate-KIC.

Engaging in market dialogue to ensure a successful tender process

The City of Helsinki launched the market dialogue on zero-emission infrastructure construction sites and the preparation of the procurement criteria in December 2019. A joint market dialogue event with the stakeholders was followed by one-to-one discussions with several infrastructure contractors. Market representatives provided valuable information about aspects such as the current condition of the fleet and the availability of electric heavy machinery and equipment, and they also confirmed the use of the proposed minimum requirements.

Spring 2020 saw the finalisation of the criteria to be used in the tender and, more widely, in the zero-emission construction site pilot project and on low-emission infrastructure construction sites. The invitation to tender for the pilot project of the boulevard of Kulosaaren puistotie was published in May 2020.

Contract documentation was being drawn up at the same time with the preparation of the green feal agreement for emission-free construction Sites. The requirements laid down in the invitations to tender for the City of Helsinki’s infrastructure contracts are more ambitious than the current requirements of the green deal agreement, which defines a joint minimum level, while cities have the option to impose stricter criteria at a faster pace.

Trialling zero-emission solutions on the construction site of the boulevard of Kulosaaren puistotie

Launched in July 2020, the conversion of the boulevard of Kulosaaren puistotie into a shared cycle lane is a pilot project in which greenhouse gas emissions and harmful local emissions generated on the site were reduced using concrete methods. The equipment fleet used on the site consisted of four fully electric heavy machinery units (three 4.2-tonne loaders and one mini excavator), while the rest of the equipment, apart from a few exceptions, was powered by renewable HVO diesel.

The other fossil-free fuels allowed to be used on the site were biogas, hydrogen, ethanol and renewable fuel oil. The heavy machinery was at least Stage IV compliant, while heavy goods vehicles were compliant with the Euro VI emission standards. Light equipment (equipment with a maximum power of 4 kW) was required to be primarily powered by electricity. The electricity used on the site was required to be produced from renewable energy sources, and heating on the site had to be based on district heating, fossil-free biofuels or green electricity. In addition, the contractor was required to have obtained environmental certification. The use of electric heavy machinery and equipment was encouraged by awarding the most economically advantageous quality scores (in which the price accounts for 70% and quality for 30%) for a maximum of five electric heavy machinery units.

The list of equipment used in the project was updated whenever new machinery and equipment was brought to the site. The consumption of fuel and electricity on the site was reported monthly in site meetings. The customer and contractor developed monitoring and reporting together.

Positive experiences pave the way for future projects

When the majority of the Kulosaari project had been completed, the HNRY project team produced a rough calculation of the emissions generated during the project compared to a project based on traditional solutions. The calculation was based on fuel and electricity consumption and equipment uptime data obtained from the contractor. The calculation showed that, thanks to the solutions used on the site, the emissions from the site were about 42% of the emissions of a similar project carried out using traditional solutions. The amount of emissions that were prevented was over 106 tonnes of CO₂ equivalent, or the annual carbon footprint of roughly ten people living in Finland.

Principles of zero- and low-emission construction sites have already been utilised on several infrastructure construction sites of the City of Helsinki. Encouraged by the success of the pilot projects, all tendered infrastructure construction sites of the City of Helsinki have been based on low-emission solutions since the summer of 2020. The experiences have primarily been positive, and it seems that having low-emission criteria in the requirements has had very little impact on companies’ motivation to participate in tenders or their pricing. In 2021, the City of Helsinki aims to apply the principles of zero-emission constructions sites compliant with the Green Deal agreement to all of its tendered infrastructure, construction and maintenance projects.

TAKE-HOME MESSAGES

• Engaging stakeholder groups and active market dialogue are focal points for formulating functional and suitably ambitious purchasing criteria.
• The ambition of the City of Helsinki to cut down the emission levels is shared within the infrastructure companies and the goals are to be realized through the procument requirements.
• Different types of collaboration platforms are recommendable for sharing the experiences and lessons learnt.
• Having an open mind is worthwhile – you learn by doing and the pace of development might surprise.

Innovative public procurement is a means for the public sector to promote and support the growth of companies that produce sustainable solutions and their product development and innovation activities. The support is given to the company by procuring a solution for a public sector operator. It is directed at the acquisition of a new sustainable product or service, or the support can be used to build a new procurement model.

This solution is right for you if

• you are interested in practical ways for the public sector to support the transition to sustainability;
• you are looking for ways to implement your company’s sustainable innovations in collaboration with public sector operators;
• you want to learn about practical tips for companies interested in submitting offers to a competitive bidding process for innovative public procurement.

BASIC FACTS

• Organisers:
  • University of Turku, Finland Futures Research Centre (FFRC), Essi Silvonen
  • Specialists and participants in the solutions forums in the HNRY project
  • The concept has been piloted in practice with Elenium Oy’s Henri Haikonen

What is innovative public procurement?

Innovative public procurement provides companies and public procurement professionals with new procedures and evaluation methods that require different skills than conventional procurement methods. In the model, public operators are clients and companies that produce solutions. The goal is to produce scalable, socially sustainable new solutions. The right to use these solutions often remains with the company, which can also apply them in its future commercial activities.

An industrial area in the planning or construction phase can be the target of innovative public procurement. In this regard, the innovative public procurement process is suitable for both infrastructure development projects and operational sites that can be used to demonstrate a clear, positive impact on the environment through new and innovative approaches.

What sets innovative procurement apart from the conventional process is that the object or process of procurement is not precisely defined. An innovative procurement contract may include the development and piloting of a new solution. When a procurement is directed at the desired effects and outcomes instead of an accurate implementation model, it gives the supplier more freedom to propose alternative solutions.

Technological developments and new products and services in the development phase mean that companies are constantly creating new solutions to meet the public sector’s requirements. Innovative public procurement makes it possible to support and apply the solutions at an early stage, whereas the more conventional procurement legislation has decreed that products and solutions can only be procured once they are widely available on the market. However, a new product or technology does not have value in itself from the client’s point of view. It is important when new solutions could potentially offer greater benefits and be more sustainable than conventional solutions.

Public procurement has a steering effect in the promotion of sustainable social and economic growth

The annual value of public procurement in Finland is about 35 billion euros, which represents 15% of Finland’s GDP. Two thirds of public procurement is accounted for by municipalities and joint municipal authorities, and a third by the state. Finland has set a goal to be carbon-neutral by 2035. To achieve this, it has resolved to carry out a national circular economy programme. It is clear that the state and the public sector alone cannot create solutions to achieve carbon neutrality. Achieving the target requires companies to invest in product development and innovation to provide solutions for both the public and the private sector.

Public procurements are the most impactful means available to the state and the public sector for steering the economy and bringing about practical changes. In order to be able to direct public procurement towards impactful sustainable solutions, those in charge of public procurement need an operating model that is based on cooperation with companies and also serves as a roadmap for creating practices and information that lead to sustainable public procurement. The innovative public procurement operating model is built to meet this need.

How to make public sector needs and companies’ abilities match?

Conditions can be created at different stages of the procurement process for ensuring that the needs of the public sector match companies’ ability to create solutions. The process starts with the identification of development of procurement needs and turns into collaboration during the contract period. Various means can be used to specify the challenges and needs, including strategic planning, cooperation between client organisations, research cooperation, predictions of future procurement and investment needs, market dialogue, impact assessment as well as experiments and pilots.

It is important that the client actively explores the range of new solutions, shares information about its needs and goals and engages in dialogue with companies in the procurement preparation phase. This is the time for companies and solution providers to make the client aware of the solutions they can offer and to have a say on how the client’s goals develop during the procurement planning phase.

In the tendering phase, the procedure defined by the client and the criteria for comparing the offers need to be such that they make it possible for new solutions to be successful and allow for their features to be improved and tested within the contract framework.

Elenium Oy – innovative public procurement is helping the company to become an international supplier of logistics and materials management software solutions

Elenium Oy built a weighing and inventory management system for a joint procurement contract by five waste companies; MaterialPort allows users to collect all necessary information about inbound and outbound loads as well as to monitor material flows in the waste management centre at various stages of the process. The system also features digital services for clients. During the process, Elenium Oy effectively developed a product, which it can sell to other logistics and waste management operators. The innovative public procurement process was, in itself, an incentive to develop the product, but it should be noted that the company also invested a significant amount of its own resources in the development of MaterialPort.

Based on Elenium Oy’s experiences, Henri Haikonen strongly believes that participating in an innovative public procurement process can be a momentous opportunity for companies. Companies are also best placed to solve many of society’s functional challenges, so solutions that promote collaboration between public organisations and businesses are important for the development of sustainability solutions. He gives the following practical advice to companies that are interested in developing their own operations with the support of innovative public procurement:

• Select development projects that support your own visions for the future.
• Find out and understand what kind of project you are getting involved in.
• Know your resources and relate them to the project on offer.
• Take a close look at your target market.
• Prepare for the public procurement process.

TAKE-HOME MESSAGES

• In the tendering phase, the procedure defined by the client and the criteria for comparing the offers need to be such that they make it possible for new solutions to be successful and allow for their features to be improved and tested within the contract framework.
• The procurement contract may include development work, piloting or incentives to carry out these activities. An innovative procurement process can also refer to an innovative way of carrying out a procurement process or to procurement that encourages suppliers to innovate. It can also mean using procurement as an instrument of innovation policies to develop business operations and innovation activities in companies.
• The procurement process is often intensive; both suppliers and end users need to become engaged in the process.
• A company bidding in innovative public procurement must carefully consider its own investment in the development efforts and assess the commercial value of the resulting solution. It is always important to look at and negotiate the entire package alongside the price, to consider possible contractual incentives and continuous development, the replicability and scalability of the solution and the brand value that the project may create.

In order to effectively monitor the carbon neutrality and resource wisdom measures of industrial areas, emission calculations and monitoring tools must be continuously developed and applied. Emission reductions achieved in industrial areas are significant in view of the climate targets of their adjacent cities as the targets cannot be met without a contribution from businesses.

This solution is right for you if

• you are looking for general information on measurement and calculation methods related to carbon neutrality and resource wisdom targets for industrial areas and construction sites.

BASIC FACTS

• Location: emission-free construction site pilot in Espoo and Helsinki, Vuosaari Harbour, Blue Industry Park in Turku, energy efficiency project in Vantaa
• Implemented by: participants in the HNRY project (Carbon-neutral and resource-wise industrial areas project)

Emission reductions in industrial areas are important for the climate targets of the participating cities

The cities have set ambitious climate targets, and they aim to achieve carbon neutrality by 2035. When a city aims for carbon neutrality, it means that emissions produced within that area are reduced to a set level (e.g. 80% of the level of 1990) and the remaining emissions are compensated.

With regard to resource wisdom, cities aim for long-term targets that are based on EU targets (by 2040). Becoming resource-wise requires close interaction and development work, including in the management of materials and logistics, between the different project participants. For example, possibilities for resource-wise and energy-efficient use of construction machinery were reviewed at Vuosaari Harbour. There is also massive potential in materials recovery and intensifying circular economy as the plastic pilot project showed.

Basis and scope of emission calculations

The state and municipalities base their emission calculations on production or area. They include all greenhouse gas emissions produced within the set area (Scope 1) and emissions from the production of energy purchased from an outside source (Scope 2). When measuring the carbon neutrality of an individual business, the calculation can focus on direct GHG emissions (Scope 1), such as the use of fuels in energy production and in vehicles, and on indirect GHG emissions (Scope 2), such as emissions from the production of purchased electricity and district heating. The rest of the emissions are compensated (Scope 4).

For industrial areas, it is best to base the calculation on consumption so that emissions from the production, transport and disposal of products and services produced and consumed within the industrial area during a set period of time (Scope 3) are taken into consideration. An example of a consumption-based calculation can be found in the concept of emission-free construction sites for the Lukutori construction site.

Emission-free construction site – calculation scope and tools

Constructions sites usually have clear boundaries within which direct emissions are produced. Maintenance sites are not as clearly defined. Materials, fuels and purchased electricity mainly come from outside these boundaries. The scope of the emission calculation for a construction site depends on which processes are identified as most significant in terms of emissions.

In the Lukutori pilot project in Espoo, the majority of emissions were identified as being indirect emissions. The consumption-based calculation used also factored in emissions from the use and production of the fuel in the machinery, the production of batteries and electricity used for electricity-powered machinery, the production of electricity used for on-site power generation and the production and transport of materials used on site.

The emission calculation for the Kulosaari pilot construction site in Helsinki included emissions from the production of fuels (including biofuel) used in construction machinery as well as emissions from the production of electricity used by machinery and the construction site.

The lack of an established monitoring system has made it difficult to monitor the data needed for emission calculations. The parties to the Green Deal agreement for emission-free construction sites are in the process of developing a monitoring tool to be introduced by the end of 2022. The introduction of the monitoring tool and new practices will require contractors and machinery operators to be trained in order to ensure the quality of the data collected.

Data and tools for measuring and monitoring the climate action of industrial areas

An extensive overview on the factors affecting the resource wisdom and carbon neutrality of an industrial area has been drawn up and included in the Turku Blue Industry Park Guide. The scale does matter as energy-efficiency investments and the energy production of an entire industrial area or a cluster of businesses can bring significant emission reductions. An area can even become climate positive.

A pilot project that trained individual companies using company-specific customised content also produced training material for public use. Company training can be used to raise awareness of emission sources, assist with calculations and the implementation of climate measures.

In Espoo and Helsinki, the emissions of an emission-free construction site were compared to those from an “ordinary” construction site. The sustainable procurement Green Deal agreement for emission-free construction sites will help to harmonise practises and introduce monitoring tools for contracting entities.

Municipalities’ emission calculations tend to follow common guidelines but individual organisations and companies can apply such varying scopes and methods for calculating indirect emissions that it compromises the comparability of the results. There is a need for harmonisation, and this is why the experience gained during projects should be put into practice more widely.

TAKE-HOME MESSAGES

• The most sensible emission calculation method for an industrial area is consumption-based calculation.
• It is important to maintain the transparency of the calculation method and the reasons for the set scope.
• There is a need for methods to be harmonised, and therefore the experience in calculation methods and tools gained during projects should be actively put into practice more widely.

When building a carbon-neutral and resource-wise industrial area, it is necessary to take into account not only the planning but also the construction of the area and its day-to-day operations. The Blue Industry Park is an area that is gradually being built beside the Turku Shipyard, and it will be a functioning ecosystem of manufacturing industries and service operators. It takes the expertise and willing of all companies to achieve resource wisdom and carbon neutrality in the area.

This solution is right for you if

• you operate in the supply chain of Turku Shipyard;
• you operate in a manufacturing industry supply chain;
• you want to streamline your supply chain operations;
• you are planning a carbon-neutral and resource-wise industrial area;
• you are a contractor or developer in a carbon-neutral and resource-wise industrial area;
• you are a public operator, such as a planning officer, and you want to know how carbon neutrality and resource wisdom are implemented.

BASIC FACTS

• Location: Perno district, Turku. Next to Turku Shipyard.
• Industrial area life cycle: planning phase
• Organiser: Blue Industry Park Oy.
• Time span: 5–10 years from 2021 onwards.
• The maritime industry network in southwestern Finland employs 11,000 people.
• The value of Turku Shipyard’s order book in Q1/2021 is EUR 6.5 billion, cruise ship deliveries until 2026.

Towards a sustainable future

Blue Industry Park is a close-knit and diverse community of companies and research institutes, which are leading the change. There are no limits to its growth opportunities. The scalable spaces and shared resources provided in the area reduce the need for non-essential investments and enable business development in a sustainable and commercially viable manner. The community is responding to megatrends of production modularity and circular economy on a scope never seen before.

New technologies and cooperation are prerequisites for success

The concept guidelines do not provide ready-made solutions for the future, but they encourage all parties to share their expertise to achieve the shared goal. For the area to be successful, the best and most sustainable technologies and operating models available must be applied in every phase and solution.

The guidelines cover solutions for design and civil engineering, buildings and operations as well as transport.

Blue Industry Park’s ecosystem also includes service companies such as occupational health care, lunch restaurants and a visitor centre. Renewable energy sources are preferred, of course, and carbon neutrality is achieved by combining several solutions.

Research collaboration with universities

It is valuable for companies operating in the area that there are four institutes of higher education in Turku with research related to the maritime industry and maritime logistics. Blue Industry Park is a platform for productive cooperation in research projects and the supply of skilled labour both now and in the future.

The universities in Turku cover disciplines that are relevant to planning and building the area, such as energy technology, structural engineering, circular economy, economics and industrial management engineering.

TAKE-HOME MESSAGES

• The area’s location in relation to existing transport links and major customers is essential to minimise emissions from transport.
• When building the area, the use of land masses in the region and the area under construction must be optimised so that unnecessary transportation and costs can be avoided.
• Renewable energy production, transmission and storage solutions need to be considered at the planning phase.
• The flexibility and modularity of the facilities improve their occupancy rate and cost efficiency.
• Sharing machinery and equipment makes it easier to adopt new eco-friendly technologies and reduces the number of equipment needed in the area.
• There must be a leader with a clear role to create an area that runs on synergy and cooperation.

Climate targets adopted by also cities require quick action to reduce emissions from the machinery and equipment used in construction and maintenance. Developing sustainable procurement strategies within the city is a multi-phase process requiring coordination, better understanding and cooperation within the industry and between partner cities.

This solution is right for you if

• your city is in the process of developing emission-free work sites and joining the Green Deal Agreement;
• you want to learn more about how emissions from heavy machinery are linked to cities’ climate targets and climate protection; or
• you are in charge of your organisation’s procurement, make purchases for projects in urban environments or coordinate projects related to sustainable procurement or work sites.

BASIC FACTS

• Location: Turku
• Organisers: Urban Environment Division and Central Administration of the City of Turku, Motiva, Valonia
• Time frame: 5/2019–5/2021

Reducing work site emissions is important for achieving climate targets

Heave machinery is used on building and infrastructure construction sites, and cities are planning to achieve significant reductions in the particulate matter and greenhouse gas emissions from these heavy-duty vehicles. According to the City of Turku’s 2018 climate report, heavy machinery and industries accounted for approximately 8% of the city’s annual greenhouse gas emissions. This rate has grown and continues to grow, proportionally, because the rates of the other largest emission sources, or energy and traffic, have started to go down.

The City of Turku has an ambitious goal of becoming climate neutral by 2029, which requires quick and systematic solutions. Working together with other cities and Motiva under the Emission-free Work Sites − the Green Deal for Sustainable Procurement Agreement has provided support and the framework for introducing the targets to the city’s different Divisions and for developing procurement criteria.

Following Oslo’s example and launching planning projects

In the HNRY project, emission-free work sites have been benchmarked in Oslo, a pioneer in using electric machinery on work sites. The site visit to Oslo provided practical information about the parameters and possibilities of using electric machinery on work sites in city centres. For example, providing electricity to the machinery is easier when the site is located near an electricity network with sufficient capacity. 

Adopting new practices requires time and planning

Constructors are trying to quickly enter the era of energy efficiency and fossil-free energy. Reducing work site emissions requires established practices to be adjusted at the same time across different areas both within cities and in the operations of construction and machinery companies. 

Electric heavy machinery and the criteria for emission-free work sites have already been piloted elsewhere in the campaign, but Turku has focused on working from the ground up as it plans to adopt the procurement criteria after the project has ended. 

Turku case – process description to help other cities plan how to proceed

Turku’s process, from benchmarking and working with other HNRY partner cities and Motiva to the first discussions with the market stakeholders on the principles of emission-free work sites, provides an interesting example to other similar-sized cities with projects of the same type.

TAKE-HOME MESSAGES

• Cities and project structures are different; do not expect progress to be identical.
• Commitment alone is not enough – a lot must be done to achieve permanent practical changes.
• Working together is power, and examples help others to avoid pitfalls.
• Changes must be fair and equal to all parties involved.
• Other cities, both in Finland and abroad, are interested in examples from pilot work sites.

The invitation to tender for the pilot construction site of Lukutori Square in Espoo included new and updated environmental criteria with the goal to reduce emissions from the construction site and transport. At the same time, the project team also piloted green procurement strategies by developing zero-emission practices used on the site and promoting resource wisdom through actions such as using Finnish paving stones.

This solution is right for you if

• you are a public procurement expert;
• you are a contractor planning to purchase new machinery or equipment or to retrofit/convert your existing equipment to reduce emissions; or
• you work in urban planning and your goal is to achieve a carbon-neutral city.

Perustietoja

• Location of the industrial area: Lukutori Square, Suurpelto/Henttaa, Espoo
• Concept executed by: City of Espoo: Public Works Department and Environment Department.
• Time frame: 6/2020–12/2020.
• Project partners: VRJ Etelä-Suomi, Ramboll Finland, the Association of Finnish Technical Traders, Ramirent Finland, Loimaan Kivi, Kekkilä, Residents’ association of Suurpelto.
• The Lukutori project team also piloted the principles of the Green Deal Agreement for Sustainable Procurement and Zero-emission Construction Sites, which was made between the Ministry of the Environment, the cities of Helsinki, Vantaa and Turku and Senate Properties in the autumn of 2020.
• In public procurement, invitations to tender may not list ‘Made in Finland’ as a selection criterion, but environmental declarations, such as EPD, are allowed. Based on life cycle analysis, Environmental Product Declaration, or EPD, is a voluntary and standardised declaration that reliably presents the essential and verified information about the environmental impact of a manufactured product or product range in a comparable manner.

Procurement criteria promoting carbon neutrality and compliant with the Finnish procurement act were used in the pilot project on the emission-free Lukutori Square construction site

The site selected for the pilot project was the new central square and its adjacent streets in the district of Suurpelto in Espoo, as the scope of the contract was ideal for piloting new environmentally sound and sustainable procurement criteria. Stakeholders were invited to a market dialogue event where speakers talked about topics such as the construction industry’s climate targets and the availability of low-emission heavy machinery and equipment. After the event, contractors had the chance to participate in one-to-one discussions with the city. The purpose of the discussions was to analyse the contractors’ equipment fleet and their ability to make an offer based on the planned minimum criteria.

The invitation to tender was adjusted to include the minimum requirements for heavy machinery and heavy goods vehicles deemed realistic by the contractors and representatives of the heavy machinery industry, as well as emission-reducing construction site practices and the implementation of resource-wise strategies. The Lukutori Square pilot project challenged customers, contractors and other stakeholders to adopt new practices and strategies to build a better, carbon-neutral future. Successful criteria for contracting and equipment procurement and other emission-reducing principles and practices will be gradually introduced to all of Espoo’s construction sites, including building, infrastructure, renovation and demolition sites.

Adding new environmental minimum requirements to contracting tenders

The sustainable procurement process was adjusted by adding the requirement for using fossil-free biofuels, biogas or (green) electricity in the contractors’ heavy machinery and equipment. To help the contractor of the Lukutori site achieve the emission reduction target faster, the City of Espoo leased out a 4.2-tonne electric loader to be used on the site and granted the contractor a total maximum bonus of EUR 30,000.00 for using machinery and equipment powered by fossil-free fuels.

In the building contract programme of the pilot site, the contractor agreed to attend training on zero-emission construction sites to increase its understanding of how impactful and necessary the new operations and practices on the site can be. With more know-how, this also gives the contractor a competitive edge in future tenders.

The transport of paving materials was also taken into account in the minimum criteria for the procurement. The project team also piloted a real-time and site-specific solution supplied by Vediafi Oy that tracks and reports on emissions from transport. The pilot project’s costs do not increase when the procurement is evaluated over a longer period of time. More resources must be allocated to the planning and contracting tender stages of a construction project to ensure climate-positive results and quality requirements are achieved. The utilisation of digital solutions will need further research in future projects, as tracking the equipment and deliveries to and from the site requires more work and collecting information manually is practically impossible.

Principles of circular economy and resource wisdom put into practice on the Lukutori site thanks to EPD

To make sure the Lukutori site was resource-wise, the team used paving stones sourced from Finland instead of China, where the stones for infrastructure projects are usually imported from. This made it possible to reduce transportation emissions to the minimum. According to the Finnish public procurement act, requiring a product or material to be made in Finland is not allowed in the selection criteria, but the EPD value (Environmental Product Declaration) can now be used instead. Based on life cycle analysis, EPD is a voluntary and standardised declaration that reliably presents the essential and verified information about the environmental impact of a manufactured product or product range in a comparable manner. Using EPD as a selection criterion in public procurement is allowed.

The pilot site also applied principles of sustainable development laid down in the Espoo Story. VTT Technical Research Centre of Finland Ltd., an HNRY project partner, produced an emission assessment to determine how impactful the measures were.

Green Deal agreement for sustainable procurement and zero-emission construction sites in public procurement boosts development

The HNRY Project prepared the Green Deal agreement for sustainable procurement and zero-emission construction sites together with the Ministry of the Environment and the cities of Espoo, Helsinki, Vantaa and Turku. The Lukutori project team applied the criteria of the first target phase of the agreement where possible. The procurement criteria laid down in the Green Deal agreement takes into account aspects such as fossil-free motive power sources of heavy machinery and equipment, heavy goods vehicles and on-site electricity and heating as well as the development of lower-emission practices to be adopted on the site. Procurement practices in the public sector have the potential to have a huge impact on the amount of these emissions. At the same time, the public sector can pioneer the use of alternative motive power sources, boost demand and create the conditions for developing the market for low-emission solutions.

TAKE-HOME MESSAGES

• The importance of market dialogue: engage contractors and other stakeholders as early as when planning the contracting tender. Each site has its own clear / most significant possibilities for emission reduction, and these should be examined together with the stakeholders to find the most cost-effective and practical solutions.
• With the help of information and genuine dialogue, prevailing attitudes in the construction industry can be influenced to increase awareness of climate matters quickly enough.
• Carbon-neutral construction techniques and strategies are not more expensive when the costs are analysed over a longer period of time and when the goal is to apply the principles of sustainable construction in other areas as well.
• Contractors and other stakeholders are well-informed and ready to take action; those in charge of public procurement must not hesitate to develop the procurement process and to demand more in terms of taking the environment into account and applying the principles of circular economy.

The success of the efforts to reduce emissions from the construction site of the Lukutori square in Espoo was evaluated through a carbon footprint assessment. Measures taken on the site were found to have had a significant impact on emission reduction: emissions from the construction of the Lukutori square were 25% of the emissions from a traditional construction site. The assessment can be used to set targets for the effective reduction of carbon footprint on construction sites and to define the measures that must be taken. It also makes it possible to examine emissions in a comprehensive manner and helps identify the most critical processes in terms of emission reduction goals.

This solution is right for you if

• you work in the procurement or construction division of a local authority; or
• you manage or represent a construction company and you are looking for new low-emission solutions.

BASIC FACTS

Project party: VTT Technical Research Centre of Finland Ltd.

Contractor: VRJ Rakennus Oy

Pilot site: Lukutori square, Espoo

Time frame: 6/2020–11/2020

Emission calculations provide information about the area’s carbon footprint

The term carbon footprint is used to describe the total greenhouse gas emissions caused by a product, activity or service. It tells us how much greenhouse gas emissions are generated during the life cycle of a product or service. When net greenhouse gas emissions are reduced, the carbon footprint of the activity becomes smaller. In a carbon-neutral society, the amount of greenhouse gas emissions released into the atmosphere by the society is the same as the amount it can capture, meaning that its net carbon footprint is zero. To be able to determine if an activity is carbon neutral, we must assess its carbon footprint throughout its entire life cycle.

Emissions calculations can be based on production or consumption. Production-based emissions calculations examine the emissions generated in a certain area, and this method is typically used to calculate the amount of emissions caused by different countries. The consumption-based approach, on the other hand, examines emissions caused by the manufacture, transport and disposal of the products or services produced and consumed, for example, by a certain community or area over a specific period of time. In the calculation of emissions from an industrial area, the consumption-based method produces more meaningful results and it is also widely used. As such, the calculations for this project were also made using the consumption-based approach.

Towards emission-free construction sites with carbon footprint calculations

The concept of carbon-neutral construction sites is divided into five phases, which are: 1) setting targets; 2) calculating current emissions; 3) identifying possibilities for carbon reduction; 4) drawing up the carbon reduction plan; and 5) implementing and verifying measures to reduce emissions.

In phase 2, the project team used the Greenhouse Gas Protocol¹, which is one of the world’s best-known and widely used calculation methods. In the calculation, emissions were divided into three scopes:

• Scope 1: direct greenhouse gas emissions, which are generated as a result of a company’s activities on site, or physically in its offices and production facilities.
• Scope 2: indirect emissions from the generation of purchased energy, or emissions caused by the production of electricity, heating and cooling used by the company (if electricity is produced off site and the company buys it).
• Scope 3: indirect greenhouse gas emissions that are caused by the company’s activities. Indirect emissions are known as “upstream emissions”, which are the emissions that are caused by the manufacture of the products the company uses in its production processes and/or the emissions caused by the use and disposal of these products.

Impact of the concept on carbon neutrality and resource wisdom in the industrial area

Emissions from the pilot site were calculated using the method described above. The calculations covered the following aspects:

• Fuel consumption of heavy machinery and equipment and fuel production
• Emissions from transport, including fuel production
• Electricity production and batteries for electric heavy machinery and equipment
• Production of electricity consumed elsewhere on the site
• Materials used on the site
  • Dry concrete
  • Growing medium
  • Rocks
  • Crushed stone
  • Cube-shaped paving stones

To illustrate the relative significance of the emission reduction measures implemented on the Lukutori site, the project team compared two different scenarios in the calculation: the actual situation of Lukutori and a made-up comparison scenario, in which no solutions to reduce greenhouse gas emissions had been implemented. The comparison scenario was based on three assumptions: all heavy machinery was powered by fossil diesel fuel (the consumption of electric heavy machinery was calculated based on the horsepower and operating hours of equivalent machinery), the electricity used was the equivalent of an average Finnish electricity network, and the stone materials were imported from China.

The results showed that the greenhouse gas emissions caused by the Lukutori construction site were approximately 90 tonnes of CO₂ equivalent, while emissions in the comparison scenario amounted to 360 tonnes. In other words, the emissions in the comparison scenario were about four times as high as the emissions from the Lukutori site. In the Lukutori project, the biggest savings were achieved through the use of Finnish rocks instead of rocks imported from China. Another significant factor was replacing fossil fuel-powered heavy machinery and equipment with electric machinery and equipment.

Since the Lukutori site was relatively small and the project duration short (approximately six months), concept phases 4 and 5 were not included in the pilot project. During these phases, the project team would have examined possibilities for emission reduction, drawn up a plan to implement and monitor these possibilities and prepared a closing report detailing how well the goals were achieved. Implementing the concept not only provides a set of tools to reduce emissions from an ongoing site, but also ideas and instructions for implementing low-emission alternatives on future construction sites.

TAKE-HOME MESSAGES

• It is important to assess emissions in a comprehensive manner.
• Attention should be paid to the ambitiousness of emission reduction targets and actions.
• Significant emission reductions can be achieved by also taking materials into account.
• In addition to purchased materials, switching to electric heavy machinery and equipment is also an essential strategy to reduce emissions.