What a carbon reduction plan is
PPN 006 says in-scope organisations should require bidding suppliers, as a condition of participation, to provide a carbon reduction plan using the government template (PPN 006). The plan:
- Commits to net zero: The supplier's commitment to net zero by 2050 for its UK operations
- Reports emissions: Current emissions for scope 1 and 2 and a defined subset of scope 3
- Lists measures: Environmental management measures in effect, including certification schemes or specific carbon reduction measures
- Is public: Published on the supplier's website
Who needs one: public contracts
When PPN 006 applies, from the Cabinet Office (checked 2 November 2026)
| Rule | |
|---|---|
| Buyers it applies to | Central government departments, their executive agencies and non-departmental public bodies |
| Contract value | Above £5 million a year, including VAT |
| Frameworks and dynamic markets | Where an individual contract is expected to exceed £5 million a year |
| From | Procurements advertised on or after 24 February 2025, under the Procurement Act 2023 |
| Earlier procurements | PPN 06/21 still applies |
The Cabinet Office says the update to PPN 006 "does not constitute a change in policy or a new call for action" (PPN 006, GOV.UK, PPN 06/21).
What goes in it
- Baseline and current emissions: Scope 1, scope 2 and the scope 3 categories listed in the technical standard, such as upstream and downstream transport, waste, business travel and employee commuting
- Greenhouse gases: The seven named by the Kyoto Protocol
- Reduction measures: What you have done and will do
- Annual review: Plans should be reviewed and updated annually
- Sign-off: Board approval stated with its date, and signed off by a director (or a designated member for an LLP) with name, title and date
Source: PPN 006 technical standard. The template is published with the PPN.
Solar as a reduction measure
Scope 2 is the emissions from the electricity, heat, steam and cooling you buy. Solar panels on your own premises reduce the electricity you buy, so they reduce your scope 2 figure year after year, and they are a specific, measurable measure to put in the plan.
- Measurable: Generation is metered, so the reduction is evidenced, not estimated
- Lasting: Panels keep reducing purchased electricity for their working life
- Within your control: Unlike grid decarbonisation, it is an action you take
- No upfront cost option: A rooftop PPA still cuts what you buy from the grid
See SECR and scope 2 emissions, solar PPAs and renewable energy for business.
Note: General information from Cabinet Office guidance, not procurement advice.
Sources
The Cabinet Office PPN 006 page, the PPN itself and its technical standard were read on 2 November 2026.
- Cabinet Office: PPN 006, taking account of Carbon Reduction Plans (published 17 February 2025, updated 10 July 2025)
- PPN 006: Taking account of Carbon Reduction Plans (HTML)
- PPN 006: Technical standard for completion of Carbon Reduction Plans
- Cabinet Office: PPN 06/21 (for procurements commenced before 24 February 2025)
Frequently asked questions
What is a carbon reduction plan?
A document a supplier publishes to win larger central government contracts. Under PPN 006 it confirms the supplier's commitment to net zero by 2050 for its UK operations, gives its current scope 1 and scope 2 emissions and a defined subset of scope 3, and sets out the carbon reduction measures it has adopted. It must be published on the supplier's website.
Is PPN 06/21 still in force?
For procurements commenced before 24 February 2025, yes. For procurements under the Procurement Act 2023 from that date, the Cabinet Office replaced it with PPN 006, which it says reflects the new terminology and does not change the policy.
Which contracts need a carbon reduction plan?
PPN 006 applies to central government departments, their executive agencies and non-departmental public bodies, for contracts with an estimated value above £5 million a year including VAT. It also applies to frameworks and dynamic markets where an individual contract is expected to exceed that. Other public bodies may choose to ask for one.
Who has to sign off a carbon reduction plan?
The technical standard says the plan should state that the board of directors (or equivalent) has approved it, with the date, and must be signed off by a director or equivalent, with their name, job title and date. It should be reviewed and updated annually.
Can solar panels go in a carbon reduction plan?
Yes, as a carbon reduction measure. Electricity generated and used on site reduces the electricity you buy, which is your scope 2 emissions, one of the figures the plan reports. PPN 006 asks for the measures in effect, and those you will be able to apply when performing the contract.
Related pages
- Solar and carbon reportingHow on-site solar affects Scope 2 emissions, location-based and market-based reporting, SECR, carbon reduction plans, supplier questionnaires and REGOs, in plain terms.
- ESOSESOS is a mandatory energy assessment for large UK undertakings every four years; solar is one of the measures an audit can lead to.
- Renewable energy for businessOn-site solar, storage, off-site PPAs and green tariffs compared, with what each does for cost and for reported emissions.
- FactoriesFactories with heavy daytime process loads can use nearly all the solar they generate. The survey focuses on the electrical system, roof condition and how to install without stopping production.