Carbon Reduction Plan Requirements Under PPN 006

A Carbon Reduction Plan is mandatory for suppliers bidding for major central government contracts. The requirement now sits in PPN 006, published in February 2025, which replaced PPN 06/21 for procurements advertised under the Procurement Act 2023 on or after 24 February 2025.

The obligation itself has not changed. If a contract is in scope and your plan is missing or non-compliant, you can be excluded before your bid is evaluated. The detail is in what a compliant plan must contain.

This guide explains when a Carbon Reduction Plan is required, what it must include, and the mistakes that get plans rejected.

When a Carbon Reduction Plan Is Required

PPN 006 applies to in-scope central government bodies awarding contracts with an estimated value above five million pounds per year, excluding VAT. Where it applies, every bidder must have published a compliant Carbon Reduction Plan as a condition of participation, regardless of the supplier's size.

The plan must be specific to the bidding entity, published on its UK website and updated regularly, normally at least every 12 months. It is a pass or fail condition, not a scored response, so a non-compliant plan removes you from the process rather than simply costing points.

What a Compliant Plan Must Contain

1. A Commitment to Net Zero by 2050

The plan must confirm the organisation's commitment to achieving net zero greenhouse gas emissions by 2050 for its UK operations.

2. Baseline and Current Emissions

Reported greenhouse gas emissions across Scope 1 (direct), Scope 2 (purchased energy) and a defined subset of Scope 3 (indirect value chain) sources. The Scope 3 categories required by PPN 006 include business travel, employee commuting, waste generated in operations, and upstream transportation and distribution.

3. Emissions Reduction Targets

Clear targets showing the trajectory towards net zero, with interim milestones rather than a single distant date.

4. Carbon Reduction Projects and Measures

The completed and planned measures the organisation is taking to cut emissions, and the carbon reduction they are expected to achieve.

5. Declaration and Sign-Off

A declaration that the plan meets the PPN 006 requirements and the associated technical standard, signed off by a director or equivalent senior person and reviewed regularly.

Quick Reference

Element	Requirement
Threshold	Central government contracts above £5m per year (excluding VAT)
Status	Pass or fail condition of participation, not scored
Emissions scope	Scope 1, Scope 2 and defined Scope 3 categories
Net zero commitment	By 2050 for UK operations
Publication	On the supplier's own UK website
Review	Updated at least every 12 months
Sign-off	Director or equivalent senior level

Common Reasons Plans Are Rejected

• Scope 3 emissions left out, when PPN 006 requires a defined subset.
• No published plan on the supplier's own website at the time of bidding.
• A plan that covers a parent group rather than the bidding entity.
• No director-level sign-off or declaration of compliance.
• An out-of-date plan more than 12 months old.
• Targets with no interim milestones or supporting reduction measures.

How Policy Pros Can Help

We write Carbon Reduction Plans that meet the PPN 006 requirements and technical standard, specific to your business and ready to publish. Our tender and proposal support service handles the plan alongside the rest of your bid documentation.

For the wider sustainability picture, our carbon emission policies and environmental policies services give you the underlying documents a credible plan rests on.

If you are building a full bid library, our guide to documents needed for public sector tenders shows where the Carbon Reduction Plan fits alongside the policies, insurances and statements buyers expect.