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What Is PPN 006? The UK Government Carbon Rule Every Supplier Needs to Know

By Frazer Holroyd · 10 min read · Carbon Reporting · Updated February 2026

PPN 006 (Procurement Policy Note 006) is the UK government policy requiring suppliers bidding for major government contracts to demonstrate their commitment to achieving Net Zero greenhouse gas emissions by 2050. It was originally introduced by the Cabinet Office in June 2021 as PPN 06/21 and renamed to PPN 006 in February 2025 under the Procurement Act 2023. The policy uses public procurement as a lever to drive carbon reduction across the UK economy.

Any business — regardless of size — that bids for public sector contracts over £5 million annually must submit a compliant Carbon Reduction Plan. The threshold is based on contract value, not company size. This applies to central government contracts and is increasingly adopted by local authorities and NHS trusts.

What Are the PPN 006 Requirements?

A compliant Carbon Reduction Plan must include seven key elements: commitment to Net Zero by 2050, current Scope 1 emissions (company vehicles, gas boilers), current Scope 2 emissions (purchased electricity), relevant Scope 3 emissions (supply chain, business travel, waste), environmental management measures, a signed board-level declaration, and publication on your company website.

PPN 006 vs PPN 06/21 — What Changed?

In February 2025, the policy formerly known as PPN 06/21 was renamed to PPN 006 under the Procurement Act 2023. PPN 006 is now the correct, current reference. The technical requirements remain identical and the Annex A template structure is unchanged.

Does PPN 006 Require Scope 3 Emissions?

Yes. PPN 006 explicitly asks suppliers to report Scope 3 emissions where they are "relevant." You don't need to report all 15 GHG Protocol categories — focus on the categories most material to your business. Common Scope 3 categories include business travel, employee commuting, purchased goods and services, and waste disposal.

Common PPN 006 Mistakes

NHS-Specific Requirements

From April 2024, the NHS extended Carbon Reduction Plan requirements to all new procurements — not just those over £5 million. NHS suppliers must also demonstrate alignment with NHS Net Zero targets and Green Plan objectives.

Frequently Asked Questions

What is PPN 006?

PPN 006 (Procurement Policy Note 006, formerly PPN 06/21) is the UK government policy requiring suppliers bidding for central government and NHS contracts over £5 million annually to submit a compliant Carbon Reduction Plan demonstrating commitment to Net Zero by 2050.

Is PPN 006 the same as PPN 06/21?

Yes — PPN 006 is the current name for the policy that was originally published as PPN 06/21 in 2021. It was renamed in February 2025 under the Procurement Act 2023. The requirements and Annex A template structure are identical.

What happens if my CRP is non-compliant?

A non-compliant Carbon Reduction Plan will result in your tender being rejected under PPN 006. Common issues include missing Scope 3 emissions, incorrect methodology, and unsigned declarations.

Do small businesses need a Carbon Reduction Plan?

Yes, if you're bidding for contracts over £5 million annually under PPN 006. The threshold is based on contract value, not company size.

What are the PPN 006 requirements for 2026?

PPN 006 requirements for 2026: commit to Net Zero by 2050, report Scope 1, 2, and relevant Scope 3 emissions using DEFRA factors, complete the Annex A template, and publish the CRP on their website. Unchanged from the original PPN 06/21.

How much does a PPN 006 Carbon Reduction Plan cost?

Professional PPN 006 CRP services typically range from £1,500–£5,000+ depending on scope coverage and support level.

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