Summary
Details
- The United Kingdom
Suppliers bidding for contracts covered by PPN 006, generally those awarded by UK central government departments, executive agencies and non-departmental public bodies with an estimated annual value exceeding £5 million, including VAT. The requirement applies where relevant and proportionate to the contract.
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Background
Government procurement in the UK is a major means of public service delivery. According to the latest official estimates, the UK public sector spent approximately £394.8 billion on procurement from the private sector in 2024/25, representing 35% of total public-sector spending. Between 2014/15 and 2024/25, annual procurement spending from the private sector averaged £295.87. In 2025/26, the government's Contracts Finder platform recorded 34,968 contract awards.
Given the scale of public procurement, the bidding process provides an important means for the government to influence private-sector practices and advance national policy objectives. Accordingly, the UK government published Procurement Policy Note (PPN 06/21) in June 2021, requiring central government departments, their executive agencies and non-departmental public bodies to consider suppliers' Carbon Reduction Plans when awarding major contracts. In February 2025, the government updated the policy as PPN 006 to reflect the Procurement Act 2023 and Procurement Regulations 2024. The updated policy applies to relevant contracts valued at over £5 million annually, including VAT.
Before PPN 06/21, there were no equivalent, specific carbon disclosure requirements for major central government procurement. However, related policies and frameworks already encouraged environmental and sustainability considerations in public purchasing. For example, the Greening Government Commitments (GGCs), first published in 2011, established targets for reducing the environmental impacts of government operations, while PPN 06/20 introduced a social value model that included climate change among its themes.
Requirements of PPN 006
Effective from 24 February 2025, PPN 006 requires suppliers bidding for relevant government contracts to provide a Carbon Reduction Plan (CRP) confirming their commitment to achieving net-zero emissions by 2050 in the UK, along with environmental management measures that they have established and can apply during the contract's execution. PPN 006 provides a template for preparing the CRP.
Among other information, the CRP must disclose the supplier's Scope 1 and Scope 2 emissions and a defined subset of five Scope 3 emissions categories, following the GHG Protocol. Emissions must be expressed in tonnes of carbon dioxide equivalent (tCO₂e). The CRP must also include a baseline emissions footprint, relevant reduction targets and environmental management measures. It must be approved by a director or equivalent senior leader, updated at least annually and published on the supplier's website.
Consequences of Noncompliance
Suppliers that fail to provide a compliant Carbon Reduction Plan may be excluded from the procurement process because they do not satisfy the applicable conditions of participation. False or misleading emissions claims could also give rise to legal consequences under relevant UK laws, depending on the circumstances. Suppliers should therefore ensure that the information in their Carbon Reduction Plans is accurate and supported by appropriate records.
Current Status
Since its publication in June 2021, PPN 06/21 has been widely adopted across UK central government and sector bodies including Crown Commercial Service (CCS), NHS England, and devolved administrations like Wales, with participation from thousands of suppliers. CCS now offers weekly CRP training, document reviews, and public CRP visibility on its site, backed by dedicated compliance teams. NHS England and CCS also host webinars and Q&A sessions to support suppliers. While enforcement remains largely reputational (disqualification for noncompliance), PPN 01/24 introduced contract-level carbon-reduction targets, enabling remediation plans or penalties under future agreements. No major legal challenges have emerged that might threaten the operation of PPN 06/21. The government’s support infrastructure including technical guidance, sector-specific training, and evolving contractual mechanisms reflects a clear commitment toward stronger enforcement and broader uptake across public-sector supply chains.
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