What is the PPN 006?
Procurement Policy Note (PPN) 006 sets out how central government organisations should take account of suppliers’ Carbon Reduction Plans (CRPs) when procuring major contracts.
It supports the UK’s legally established objective of achieving Net Zero greenhouse gas emissions by 2050 by using public procurement to encourage suppliers to understand, measure and reduce their carbon emissions.
For relevant procurements, suppliers are required to provide a CRP as a condition of participation. The CRP must confirm the supplier’s commitment to achieving Net Zero by 2050 at the latest in the UK, provide the required greenhouse gas emissions information and identify environmental management measures that will be used when delivering the contract.
PPN 006 applies under the Procurement Act 2023/2024 and updated procurement regulations and terminology. It is the updated UK government procurement policy note that rebranded and replaced PPN 06/21 in February 2025. In Wales, the equivalent policy is WPPN 006: Decarbonisation through procurement – taking account of Carbon Reduction Plans.
Who does PPN 006 apply to?Â
PPN 006 applies to central government departments, their executive agencies and non-departmental public bodies when awarding relevant public contracts.
It applies to contracts for goods, services and works, other than special regime contracts, where the estimated contract value is above ÂŁ5 million per year, including VAT, under the Procurement Act 2023.
The requirement must be relevant to the contract and proportionate to its nature, complexity and cost. Government guidance expects PPN 006 to be relevant to most contracts above the ÂŁ5 million threshold because environmental considerations and carbon reduction are generally relevant to contract delivery.
The PPN also applies to frameworks and dynamic markets where an individual contract to be awarded is estimated to exceed ÂŁ5 million per year, including VAT.
Other public-sector contracting authorities are not required to apply PPN 006 but may choose to adopt its approach.
What are the key requirements?Â
For relevant procurements, contracting authorities should include a requirement for suppliers to provide a CRP as a condition of participation.
A compliant CRP must:
- confirm the supplier’s commitment to achieving Net Zero by 2050 in the UK;
- report the required greenhouse gas emissions using the GHG Protocol Corporate Accounting and Reporting Standard;
- include the required Scope 1, Scope 2 and relevant Scope 3 emissions (category 4, 5, 6, 7, and 9);
- set out environmental management measures that will be applied during contract delivery;
- use the prescribed CRP template and meet the PPN 006 Technical Standard;
- include emissions data for a reporting period no more than 18 months prior to the date of commencement of the procurement; and
- be appropriately approved, signed-off and published on the contracting organisation’s website.
The CRP must relate to the bidding supplier. In specified circumstances, a CRP covering both the supplier and its parent organisation can be used, provided the detailed requirements and eligibility conditions are satisfied.
Importantly, CRPs are not scored or ranked against one another. They are assessed against the specified requirements as a condition of participation.
What are the timelines and deadlines?Â
PPN 006 was published in February 2025 and applies to relevant procurements advertised on or after 24 February 2025.
Suppliers should ensure their CRP contains sufficiently current information before entering a relevant procurement. Under the current guidance, the reporting period covered by the CRP must fall no more than 18 months before the date the tender notice is published.
Organisations should therefore maintain their CRP as a live document rather than preparing one only when a tender is released. Annual review and updating of emissions data, targets, governance arrangements and environmental measures will help ensure the organisation can respond to procurement requirements promptly.
For procurements commenced and contracts awarded before 24 February 2025, the previous PPN 06/21 regime applies instead.
What are the risks of non-compliance?Â
For suppliers, failure to meet the PPN 006 requirements can prevent participation in a relevant government procurement. Because the CRP requirement operates as a condition of participation, a supplier that does not satisfy the specified requirements may fail the relevant assessment and be excluded from progressing.
Potential issues include failing to demonstrate a Net Zero 2050 commitment, omitting required emissions information, using an outdated or non-compliant methodology, failing to provide the required environmental management measures, or submitting a CRP that does not meet the Technical Standard.
There are also wider commercial and reputational risks. Organisations without robust carbon data and governance may find it harder to respond to public-sector tenders and increasing customer or supply-chain sustainability requirements.
For contracting authorities, incorrectly applying the PPN or failing to set out the requirements clearly in procurement documentation can create procurement and governance risks.
What are the business opportunities?Â
PPN 006 creates opportunities for organisations that can demonstrate credible carbon management and a clear pathway to Net Zero.
For suppliers, having a compliant and well-developed CRP can help maintain access to major central government contracts. Strong carbon measurement and reduction capabilities can also differentiate an organisation when responding to wider customer and supply-chain sustainability requirements.
The process of developing a CRP can identify opportunities to reduce energy consumption, operational emissions, waste, travel and supply-chain impacts, potentially generating cost savings as well as environmental benefits.
There are also opportunities for organisations providing carbon accounting, emissions verification, environmental management, energy efficiency, decarbonisation and sustainability services.
More broadly, PPN 006 is contributing to a shift in public procurement towards greater consideration of suppliers’ environmental performance and carbon-management capabilities.
How should organisations prepare?Â
Organisations seeking government contracts should establish a robust process for maintaining their CRP.
Key steps include:
- determine whether current and planned bids fall within PPN 006;
- calculate organisational greenhouse gas emissions using the required methodology;
- complete the official PPN 006 CRP template;
- document a credible commitment to achieving Net Zero by 2050;
- ensure required Scope 1, Scope 2 and Scope 3 information is available;
- identify environmental management measures relevant to contract delivery;
- obtain appropriate internal approval and sign-off;
- publish the CRP on the contracting organisation’s website;
- monitor the age of the emissions data and update the CRP when necessary; and
- establish clear ownership across procurement, sustainability, finance and operational teams.
Organisations should not wait until a tender is published to start preparing. Maintaining accurate emissions data and a current CRP enables suppliers to respond quickly when relevant opportunities arise.