What is PPN 006 and who needs to comply?

PPN 006 is the UK Government's mandatory carbon reporting requirement for public sector suppliers. It was introduced to ensure that every major government contractor has a credible plan to reach net-zero by 2050.

According to the UK Government's PPN 06/21 guidance, Procurement Policy Note 06/21 was introduced by the UK Cabinet Office in September 2021. It requires any supplier bidding for central government contracts worth over £5 million per year to publish a Carbon Reduction Plan (CRP) on their website before their bid can be evaluated.

The policy is part of the UK Government's commitment to reach net-zero by 2050 and to use public procurement — worth over £300 billion annually — as a lever to drive decarbonisation across the supply chain. According to the GHG Protocol Corporate Standard, standardised carbon reporting is essential for tracking progress toward national and international climate targets.

PPN 006 applies to any supplier bidding for central government contracts over £5 million per year, and from April 2024, all NHS contracts regardless of value. This makes it one of the widest-reaching carbon policies affecting UK businesses.

According to the UK Government's PPN 06/21, the policy specifically applies to:

• Central government contracts over £5 million per year — this includes all ministerial departments, executive agencies, and non-departmental public bodies.
• ALL NHS contracts from April 2024 — the NHS has extended the requirement to all contracts regardless of value, making it the single largest enforcement of carbon planning in UK procurement. Read our NHS contract carbon plan guide for full details.
• MOD contracts — the Ministry of Defence applies PPN 006 to its procurement, including through Defence Equipment & Support.

According to the Cabinet Office, many local authorities and devolved administrations have also adopted PPN 006 voluntarily, and frameworks like G-Cloud 15 and DOS7 now require a CRP at the application stage. With 5.5 million SMBs in the UK, the ripple effect through supply chains is significant.

A compliant CRP must include quantified emissions data, reduction targets, and a net-zero commitment. It follows a specific structure defined by the Crown Commercial Service and must be published on your website.

According to the Crown Commercial Service, a compliant CRP must include:

• A baseline year for your greenhouse gas emissions
• Scope 1 and Scope 2 emissions reported in tonnes of CO2 equivalent (tCO2e)
• A minimum of five Scope 3 emission categories
• A commitment to achieving net-zero by 2050
• Specific reduction targets and measures
• Sign-off by a board-level director or equivalent

The CRP must be published on your company website and kept up to date. According to DEFRA, their official emission factors must be used for all conversions. You can learn more about how emissions are calculated on our methodology page. For template guidance, see our CRP template UK guide.

Without a published Carbon Reduction Plan, your bid will be automatically excluded at the selection stage. It does not matter how competitive your pricing or technical submission is.

According to the UK Government's PPN 06/21, the CRP requirement is a pass/fail gate. If you do not have a published Carbon Reduction Plan at the time of bid submission, your tender will be excluded at the selection stage. It does not matter how competitive your pricing is or how strong your technical submission — without a CRP, your bid will not be evaluated.

This is not a "nice to have" scored criterion. It is a mandatory requirement that procurement teams check before opening your bid. According to the Federation of Small Businesses, over 60% of SMBs bidding for government work were unaware of the CRP requirement until their first bid was rejected. For the 5.5 million SMBs in the UK, understanding this pass/fail gate is critical to maintaining access to £300 billion in public sector contracts.

CarbonPass automates the entire CRP creation process, from emissions calculation to document generation. Most businesses complete it in under 20 minutes.

CarbonPass calculates your Scope 1, 2 and 3 emissions from your utility bills and generates a fully PPN 006 compliant Carbon Reduction Plan — ready to publish on your website. According to DEFRA guidelines, all conversions use the latest official emission factors. Learn more about how we calculate emissions on our methodology page, or read about our team and approach.

What is PPN 006?

PPN 006 (Procurement Policy Note 06/21) is a UK Government policy requiring suppliers bidding for central government contracts over £5 million per year to publish a Carbon Reduction Plan (CRP) before their bid can be evaluated.

Who needs to comply with PPN 006?

Any supplier bidding for central government contracts worth more than £5 million annually. From April 2024, all NHS contracts also require a Carbon Reduction Plan regardless of value.

What happens if I don't have a Carbon Reduction Plan?

Your bid will be excluded at the selection stage. It is a pass/fail requirement — without a published CRP, your tender cannot progress to evaluation.

Does PPN 006 apply to subcontractors?

Currently, PPN 006 applies directly to prime contractors. However, many prime contractors now require their supply chain to have a CRP to include their emissions in Scope 3 reporting.

How quickly can I get a compliant Carbon Reduction Plan?

With CarbonPass, most UK businesses can generate a PPN 006 compliant CRP in under 20 minutes by uploading their utility bills and answering a few questions.

Does PPN 006 apply to NHS contracts?

Yes. From April 2024, all NHS contracts require a Carbon Reduction Plan regardless of value. This includes NHS Supply Chain frameworks, regional NHS trusts, and Integrated Care Boards (ICBs).

What is the difference between PPN 006 and PPN 01/21?

PPN 01/21 is the broader social value policy that covers community benefits, equal opportunity, and environmental impact. PPN 006 specifically addresses carbon reduction and requires a published Carbon Reduction Plan with quantified emissions data.

Is PPN 006 mandatory for local council contracts?

PPN 006 is not mandatory nationally for local authority contracts. However, many local councils and devolved administrations have adopted it voluntarily, and an increasing number of framework agreements require a CRP at the application stage.