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Act No. 120/2016 on Public Procurement replacing Act No. 84/2007

(...) Article 49.
Technical specifications
(...) Without prejudice to mandatory national technical rules to the extent that they are compatible with the obligations of the Republic of Icelandic pursuant to the EEA agreement, technical specifications shall be formulated in any of the following manners:
(...) b. In terms of performance or functional requirements; the latter may include environmental characteristics. However, such parameters must be sufficiently precise to allow tenderers to determine the subject-matter of the contract and to allow contracting authorities to compare tenders.
(...)

Article 50.
Labels
Where contracting authorities intend to purchase works, supplies or services with specific environmental or social characteristics they may require a specific label as means of proof that the required conditions are fulfilled. The contracting authority may require specific environmental or social characteristics in the technical specifications, the award criteria or the contract performance conditions (...)

Article 66.
General provisions on awarding a contract
(...) The contracting authority may reject the awarding of the contract to the tenderer who has the most economically advantageous tender if it is possible to demonstrate that it does not comply with collective agreements, environmental legislation or social rights.
(...)

Article 68.
Reasons for exclusion due to personal situation.
(...) On an exceptional basis, for overriding reasons relating to the public interest such as public health or protection of the environment, derogation from the exclusion may be provided for according to paragraphs 3 and 4, provided that these reasons are more weighty that the reasons for the exclusion of the tenderer.
Contracting authorities may exclude from participation in a procurement procedure any economic operator in any of the following situations: (...)
a. Economic operator has violated applicable national or international obligations in the fields of environmental, social and labour law and collective agreements and the contracting authority is able to demonstrate this.
(...)

Article 74.
Means of proof
A contracting authority may require the certificates, statements and other means of proof as evidence for the absence of grounds for exclusion according to Article 68, and for the fulfilment of the selection criteria in accordance with Articles 69 -72. A contracting authority shall not require means of proof other than those referred to in this Article and in Article 75 concerning quality- and environmental standards.
(...)

Article 75.
Quality assurance standards and environmental management standards
(...) Where a contracting authority requires the production of certificates drawn up by independent bodies attesting that the economic operator complies with certain environmental management systems or standards, it shall refer to the Eco-Management and Audit Scheme (EMAS) of the European Union or to other environmental management systems as recognised in accordance with the pertinent regulation or other environmental management standards based on the relevant European or international standards by accredited bodies.
(...)

Article 79.
Award criteria
(...) The award criteria based on sub-paragraph-3 of paragraph 1, shall be linked to the contents of the contract, and can i.a. cover:
a. Quality, including technical benefits, appearance and usefulness, accessibility, design for all users, social, environmental and innovative qualities, and trade and the requirements for that. (...)
When choosing a tender on the basis of sub-paragraph 3 of paragraph 1 the buyer may determine a fixed price, or fixed cost, and choose the tender solely based on quality, environmental or social factors.
(...)

Article 80.
Calculation of life-cycle cost
The calculation of the life-cycle cost shall, as may be appropriate, cover a part of, or all of the following life-cycle costs of the supplies, services or works.
a. The costs that the contracting authority or other users bear, such as:
1. cost of acquiring,
2. cost of use, e.g. energy use and the use of other resources,
3. maintenance cost,
4. processing cost, e.g. the cost of gathering and recycling.
b. Cost that pertains to environmental externalities in relation to supplies, services or works during their life-cycle, provided that it is possible to determine their value. Such cost may include cost of releasing greenhouse gasses and other release of pollutants and other costs involved in reducing climate change. (...)
The method that is used in order to evaluate the cost that pertains to environmental externalities shall meet all the following criteria:
a. be based on objectively verifiable criteria without discrimination; and if it is not for repeated or continuous use, it shall not be more advantageous or disadvantageous for specific economic operators so as to be undue,
b. be accessible to all interested parties,
c. economic operators shall be able to present the relevant documentation that is considered sufficient without it resulting in discrimination.
(...)

Article 87.
Conditions for the performance of contracts
(...) The conditions can primarily be related to matters concerning economic, innovation related, environmental, social or occupational aspects.
(...)

Article 94.
Main principles for the selection of tenders
(...) The contracting authority is also free to select a service provider on the basis of the tender which offers the best ratio between price and quality taking into account the quality and the sustainability criteria for social services.

The Agreement covers trade in goods, inter alia trade in industrial products, including fish and other marine products, and processed agricultural products. Also included are provisions on intellectual property rights, investment, services and government procurement, payments and capital movements, trade and sustainable development, and provisions on administration and dispute settlement. In addition, the individual EFTA States and Bosnia and Herzegovina concluded bilateral agreements on basic agricultural products, which form part of the instruments creating the free trade area. The Agreement establishes a Joint Committee, which will supervise the application thereof.

Preferential Treatment to Services and Service Suppliers in Sewage services from LDCs

Preferential Treatment to Services and Service Suppliers in Refuse disposal services from LDCs

Preferential Treatment to Services and Service Suppliers in Sanitation and similar services from LDCs

Preferential Treatment to Services and Service Suppliers in other environmental servicesfrom LDCs

Preferential Treatment to Services and Service Suppliers in Auxiliary services as required bymaritime transport operators, including additional commitments to make available to international maritime transport suppliers Garbage collecting and ballast waste disposal services from LDCs

The Agreement includes provisions on trade and sustainable development, among others.

Payments under environmental programmes: Environmental programmes; afforestation environmental programmes