PPN 006: Your Guide to Public Procurement and Carbon Reduction Plans

When it comes to bidding on Public contracts, you need to take sustainability seriously. PPN 006 is the policy notice that sets the rules.
Written by: Will Goldsmith
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Updated: 05/09/25

But what exactly is PPN 006, why does it matter, and how can you comply without wasting weeks of your time?

This guide explains the background, legal detail, common pitfalls, and the practical steps to create a compliant Carbon Reduction Plan (CRP). It also shows how you can turn compliance into a competitive advantage.

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PPN 006 Guide to Public Procurement

Table of contents

Table Of Content

What is PPN 006 and How Does it Affect Procurement?

PPN 006 stands for Public Procurement Notice 006: Taking Account of Carbon Reduction Plans in the Procurement of Major Government Contracts.

It requires suppliers bidding on central government contracts worth £5 million or more per year to provide a Carbon Reduction Plan.

The policy ensures that government contracts go to organisations serious about cutting emissions. It’s about using public money to push progress towards the UK’s Net Zero target.

PPN 006 vs PPN 06/21: What Changed?

You might have heard of PPN 06/21, the earlier version. PPN 006 replaces this term.

PPN 006 is effectively a re-brand of existing requirements. If you relied on a PPN 06/21-compliant CRP last year, you’ll likely need to update your plan.

Who Does PPN 006 Apply To?

PPN 006 applies to:

  • Central Government Departments

  • Executive Agencies

  • Non-Departmental Public Bodies

It covers any supplier bidding for in-scope contracts, including those working in consortia or as subcontractors.

While the official threshold is £5m+, expect trickle-down. NHS Trusts, local authorities, and many private sector clients are already applying PPN 006-style requirements to smaller contracts.

What Counts as a PPN 006-compliant Carbon Reduction Plan?

A Carbon Reduction Plan (CRP) must include:

  • Current greenhouse gas emissions (Scopes 1, 2, and the five required Scope 3 categories).

  • Carbon reduction targets aligned with the UK 2050 net zero goal.

  • Actions already taken to cut emissions.

  • Future measures planned.

The CRP must follow the Technical Standard for Completion of Carbon Reduction Plans, which means:

  • Stating a baseline year.

  • Covering Scope 1, Scope 2, and at least five Scope 3 categories: upstream transport, waste, business travel, staff commuting, downstream transport.

  • Using GHG Protocol and DEFRA factors.

  • Publishing the CRP online and linking it in your bid.

 

Why PPN 006 Matters for Your Business

PPN 006 is not just red tape. Done well, it can reshape how buyers view your business.

  • Procurement is changing: Government spends £300bn a year. By linking contracts to carbon reduction, they’re driving supply chain change.

  • Private sector is following: Investors and regulators are forcing corporates to adopt PPN 006-style rules.

  • Competitive edge: A credible CRP signals professionalism, transparency, and readiness for the low-carbon economy.

Start early. Stay compliant. Utilise your CRP to differentiate yourself in tenders.

How to Create a PPN 006-Compliant Carbon Reduction Plan

Our team of sustainability experts has created an in-depth carbon reduction plan masterclass. This 12-part video series walks through the full process of producing a PPN 006-compliant carbon reduction plan from start to finish.

You’ll need to follow these steps:

Step 1: Define Boundaries

Decide which parts of your organisation to include. For SMEs, this usually means the whole company.

Step 2: Gather Data

Collect 12 months of data:

  • Fuel use (vehicles).

  • Energy consumption (buildings).

  • Business travel.

  • Waste records.

  • Staff commuting.

  • Logistics and distribution.

Step 3: Calculate Emissions

Use the latest DEFRA conversion factors to calculate COâ‚‚e. Many firms underestimate the workload here. You can use our free course or work with us to take the heavy lifting off your plate.

Step 4: Set Targets

Make them realistic and aligned with net zero. Interim targets to 2030 help show a clear trajectory.

Step 5: Outline Actions

List what you’ve done (e.g. renewable tariffs, LED upgrades) and what you plan to do.

Step 6: Format and Publish

Follow the official template, keep it under 5 pages, and publish it on a public-facing webpage.

Common Mistakes in PPN 006 Compliance

  • Missing Scope 3 categories: Omitting commuting or downstream transport makes a CRP non-compliant.

  • Unrealistic targets: Over-ambitious pledges without detail look unserious.

  • Outdated DEFRA factors: Using old data undermines credibility.

  • No baseline year: Targets are meaningless without one.

  • Hidden CRP: Procurement teams must find your CRP on a public webpage.

Avoid these and you’ll already be ahead of most bidders.

How Long Does it Take?

Producing a CRP in-house typically takes:

  • SMEs with simple operations: 20–40 hours

  • Multi-site organisations: 60–80 hours

  • Complex supply chains: 100+ hours

Most of that time is spent on data gathering. That’s why many companies choose external support.

PPN 006 Compliance Checklist

  • Baseline year set

  • Scopes 1, 2, and five Scope 3 categories included

  • DEFRA factors used

  • CRP less than 12 months old

  • CRP published online

  • Live link included in tender

  • Targets realistic and net zero aligned

Tick all these boxes and you’re compliant.

Next Steps

If you feel overwhelmed, you’re not alone. PPN 006 compliance is challenging, but you don’t need to do it alone.

That’s why we created our Streamlined Carbon Reduction Plan service. We cut the workload, guarantee compliance, and help you produce a plan that strengthens your bid.

Frequently Asked Questions (PPN 006)

What is PPN 006 in procurement?
It’s the UK government notice that requires bidders for contracts over £5m to submit a Carbon Reduction Plan.

How is PPN 006 different from PPN 06/21?
PPN 006 is the update and replacement of PPN 06/21. It aligns closely with international reporting frameworks, requires consistent Scope 3 coverage, and clarifies how CRPs must be structured, maintained, and published.

Does PPN 006 apply to SMEs?
Yes, if bidding for central government contracts over £5m. Even below that threshold, NHS Trusts and corporates often expect CRPs – regardless of your size.

What must a CRP include for PPN 006?
Scopes 1, 2, and five Scope 3 categories, a baseline year, targets, actions, and publication on a public website.

How do I publish a CRP?
Upload it to a public webpage and link it directly in your tender submission.

Need help creating Your Carbon Reduction Plan?

Need help creating your Carbon Reduction Plan?

We’ll streamline the whole process and guarantee it meets your procurement requirements. Discover how to become a climate-credible business today!

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Not sure where to start with Carbon Reduction?

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About the Author

Will Goldsmith
Will heads up our growth, sustainable innovation and project management at Litmus. Having spent the last half-decade launching low carbon energy products across the UK, Will is well placed to help your organisation capitalise on sustainability-related business opportunities.

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