Public Procurement Note 06/21 and Carbon Reduction Plans

Public Procurement Note 06/21 and Carbon Reduction Plans

The government recently released Public Procurement Note 06/21, which states that all organisations supplying public sector contracts with a value of more than £5 million must have a carbon reduction plan in place. A Carbon Reduction Plan is a statement from an organisation detailing their current carbon footprint, along with their commitment to help the UK achieve Net Zero emissions by 2050.

Carbon Reduction Plan update: the NHS has announced the extension of its Carbon Reduction Plan requirements to cover all new procurements with effect from April 2024. Designed to ensure all NHS suppliers support progress towards the NHS Net Zero Target, the extension provides a phased approach for large and small suppliers using a two-tiered approach based on contract values.

Full Carbon Reduction Plans will be required for the following:

  • Contracts of £5 million per annum (excl. VAT) and above
  • New frameworks where it is expected that the value of the contract to be awarded under the agreement is likely to be £5 million per annum and above
  • All new frameworks operated by in-scope organisations (NHS organisations and organisations acting on their behalf)

A Net Zero Commitment is required for all contracts below £5 million per year (excl. VAT) and above £10,000 per year (excl. VAT).

A Carbon Reduction Plan is designed to:

  • Identify the impact that the project will have on the environment
  • Provide details of the environmental measures that will be present in the plan

A Carbon Reduction Plan should include the following:

  • A confirmed commitment to achieving Net Zero Carbon by 2050 in the UK
  • Current emissions for Scopes 1 and 2 of the GHG Protocol, as well as a plan for identifying and mitigating Scope 3 emissions
  • Provisional emissions reporting in CO2e for all six gases referenced in the Kyoto Protocol
  • A detailed outline of current environmental management measures, including specific plans and measures that focus on carbon reduction, and how those plans will be applied to achieve the Net Zero Carbon target
  • Approval from the organisation’s governing body or board of directors falling within 12 months of the procurement date
  • Proof that the Carbon Reduction Plan is publicly available through the organisation’s website

A Carbon Reduction Plan functions as a roadmap – showing an organisation how to get to Net Zero Carbon and setting out a strategy to do so.

How can GEP Environmental help?

The GEP Environmental team can provide tailored support throughout the entire process, from supporting with legislative requirements to conducting a carbon footprint and using that information to create a Carbon Reduction Plan. We support clients from a variety of sectors that will need to adhere to the requirements of PPN 06/21, including Healthcare, Real Estate, Manufacturing, Retail, Food & Beverage, Hospitality, Leisure, Higher Education, Transport, Logistics, and Public Sector organisations.

  • Carbon Footprint Support: our team can provide support to assist with the collection of qualified data, and advise on areas of greatest emissions production and potential reduction.
  • Emissions Calculation: our experts can assist your organisation with collating current Scope 1 and Scope 2 emissions, following international standards and best practice guidance including GHG Protocol and ISO 14064-1
  • Environmental Management Measures: the GEP Environmental team is well-versed in helping organisations understand, create and implement measures that focus on carbon reduction, as well as contextualising how those plans will be used to meet the Net Zero Carbon target
  • Carbon Reduction Plan Document: our team will assist you in creating the Carbon Reduction Plan document, ensuring that plans are clear to stakeholders and employees alike. The GEP Environmental team has considerable experience managing these delicate relationships and is well-placed to provide advice and support to organisations of all sizes.

For more information about PPN 06/21 and Carbon Reduction Plans, get in touch with a member of our team today.

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