PPN 006 Carbon Reduction Plan explained
By the companypolicies.ai team, published by Spire Trade Advisors Ltd · Published · Last updated · 7 min read
In short
PPN 006 requires bidders for in-scope central government contracts above £5m a year (including VAT) to provide a Carbon Reduction Plan as a pass/fail condition of participation. The plan must commit to net zero by 2050, report specified emissions, be approved by a director and be published on your UK website.
What PPN 006 is
PPN 006 is the Procurement Policy Note for taking account of Carbon Reduction Plans in major government contracts under the Procurement Act 2023. It replaces PPN 06/21 for procurements commenced on or after 24 February 2025; PPN 06/21 continues to apply to procurements started under the previous regime.
When a Carbon Reduction Plan is required
- In-scope organisations are central government departments, their executive agencies and non-departmental public bodies.
- It applies to contracts with an anticipated value above £5 million a year (including VAT), where relevant and proportionate to the contract.
- It is assessed as a condition of participation (pass/fail), not scored.
- Other public bodies and prime contractors may also ask for a CRP in their own procurements.
What the plan must contain
- A commitment to achieving net zero by 2050 at the latest, in line with the Climate Change Act 2008.
- Current emissions for Scope 1 and Scope 2, plus five Scope 3 categories: upstream transportation and distribution, waste generated in operations, business travel, employee commuting, and downstream transportation and distribution.
- Environmental management measures in place, and the reduction measures you will take.
- Approval by a director (or equivalent), with the plan updated at least annually.
- Publication on your UK website, with the link provided in your bid.
Common mistakes
- Omitting one of the five required Scope 3 categories.
- Letting the plan go more than 12 months without an update.
- Hosting it only as an email attachment instead of publishing it on your website.
- Confusing a CRP with an environmental policy. You will usually need both.
How our template helps
Our Carbon Reduction Plan template follows the PPN 006 structure and prompts for each required figure and declaration. You supply your own emissions data (it does not calculate emissions), then approve and publish it. See the government's own guide below for methodology.
Frequently asked questions
What is the difference between PPN 006 and PPN 06/21?
PPN 006 is the version for procurements commenced under the Procurement Act 2023, from 24 February 2025. PPN 06/21 still applies to procurements that started under the previous rules (the Public Contracts Regulations 2015). Check which regime the tender is run under before you prepare your plan.
Which Scope 3 categories does a Carbon Reduction Plan need?
Five: upstream transportation and distribution, waste generated in operations, business travel, employee commuting, and downstream transportation and distribution, alongside your Scope 1 and Scope 2 emissions.
Do small businesses need a Carbon Reduction Plan?
PPN 006 is triggered by the contract (in-scope central government contracts above £5m a year), not by the size of your business. Smaller suppliers are also asked for one by prime contractors and by other public bodies that choose to follow the same approach. For smaller contracts, an environmental policy is usually what is requested.
How often must the plan be updated?
At least once a year, approved by a director (or equivalent) and republished on your website.
Related guides
Sources
- PPN 006: Taking account of Carbon Reduction Plans (GOV.UK)
- PPN 006 frequently asked questions (GOV.UK)
- How to create a Carbon Reduction Plan (Government Commercial Agency)
- Climate Change Act 2008 (legislation.gov.uk)
Written and reviewed by the companypolicies.ai team at Spire Trade Advisors Ltd, using the official sources listed above; last checked 2 October 2026. General information, not legal advice. Procurement rules and guidance change, and individual tenders set their own requirements; always check the procurement documents and current GOV.UK guidance.