PPN 06/21 (Carbon Reduction Plans)

What is PPN 06/21 (Carbon Reduction Plans)?

Procurement Policy Note 06/21 (PPN 06/21), titled "Taking account of Carbon Reduction Plans in the procurement of major government contracts," came into effect on 30 September 2021. It requires any supplier bidding for UK central government contracts with an estimated annual contract value exceeding £5 million (including VAT) to have a published Carbon Reduction Plan (CRP).

The CRP must be published on the supplier's public website before the contract is awarded. It must be confirmed as part of the selection process — typically through a pass/fail selection question. The plan must use the government's standardised CRP template and include: the organisation's current greenhouse gas emissions for Scope 1, Scope 2, and a defined subset of Scope 3 categories; a baseline year; a commitment to achieving net zero by 2050; interim reduction targets; a description of carbon reduction projects (completed, in progress, and planned); and a director-level sign-off confirming accuracy.

The Scope 3 categories specified by PPN 06/21 are: upstream transportation and distribution (Category 4), waste generated in operations (Category 5), business travel (Category 6), employee commuting (Category 7), downstream transportation and distribution (Category 9), and use of sold products (Category 11). Organisations must report on all categories that are relevant to their operations.

PPN 06/21 was a significant policy intervention because it used the government's purchasing power — over £300 billion annually — to drive carbon transparency across the supply chain. For many mid-sized companies, preparing a CRP was their first engagement with formal carbon accounting. The requirement cascades through supply chains as prime contractors pass the obligation to their subcontractors.

Since April 2023, contracting authorities have been permitted to evaluate the quality of Carbon Reduction Plans as part of the tender assessment (not just as a pass/fail gate). This means a more ambitious, better-evidenced CRP can provide a competitive advantage in winning government work. The Social Value Model (TOMs framework) often weights carbon reduction commitments in procurement scoring.

The requirement applies to central government departments and their executive agencies. It does not currently apply to devolved administrations (Scotland, Wales, Northern Ireland), local authorities, or NHS trusts, although many of these bodies have adopted similar requirements voluntarily.

How Climatise Helps

Climatise produces Carbon Reduction Plans in the government-mandated template format. The platform calculates your baseline and current emissions across all required scopes and categories, models reduction pathways, and generates a publication-ready CRP document — saving weeks of manual preparation.

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