What Is a PPN 006 Carbon Reduction Plan?

By Frazer Holroyd · 8 min read · Carbon Reporting · Published May 2026

If you have landed here, someone has probably asked you for a Carbon Reduction Plan as part of a government tender. This guide explains exactly what a PPN 006 Carbon Reduction Plan is, whether you need one, and the seven steps to build one that holds up to scrutiny.

What Does PPN 006 Stand For?

PPN stands for Procurement Policy Note — the rules issued by the UK government to public sector buyers about how to procure goods and services. PPN 006 was introduced in 2021 (originally PPN 06/21, renamed under the Procurement Act 2023). It requires any supplier bidding for a central government contract worth over £5 million per year to have a Carbon Reduction Plan, published on their website and submitted with the tender.

The requirement has spread to local government, NHS Trusts, housing associations, and large private sector supply chains.

What Is a Carbon Reduction Plan?

A CRP is a document stating: here is our carbon footprint, here are our reduction targets, and here is how we will get there. It must follow the GHG Protocol Corporate Standard for emissions measurement, use the official Annex A template, and be signed off by a director.

Do You Actually Need One Right Now?

The trigger is usually a tender. Check tender documents early — the requirement is often buried under "Social Value" or "Supplier Requirements". Three routes exist: in-house, consultant-led, or software-supported. Cheap spend-based online services are increasingly being rejected by buyers.

The 7 Steps to Build a PPN 006 CRP

1. Collect Your Data — Measure Scope 1, 2, and 3 emissions per the GHG Protocol. PPN 006 mandates five specific Scope 3 categories.
2. Calculate and Document — Convert all emissions into tCO2e. Document methodology and emission factors used.
3. Set Your Targets — Commit to specific reductions over a 5-year period against a baseline year.
4. Define Your Initiatives — For each target, list the actions, timelines, and expected carbon savings.
5. Complete the Annex A Template — Use the official government structure (sections A–G).
6. Director Sign-Off — Include full legal name, job title, and date.
7. Publish Publicly and Update Annually — The CRP must be on your website and refreshed each year.

Pre-Submission Checklist

• All five mandatory Scope 3 categories are included.
• All emissions are reported in tCO2e with the calculation method documented.
• A director has signed off with their full legal name, job title, and date.
• The CRP is publicly available on the company website.

Common Reasons CRPs Are Rejected

• Missing one or more of the five mandatory Scope 3 categories.
• Emissions not reported in tCO2e.
• Calculation methodology not documented.
• Vague targets rather than specific, measurable five-year commitments.
• No director sign-off, or sign-off missing job title or date.
• CRP not publicly available on the company website.

Official source: the full PPN 006 Technical Standard is published on GOV.UK.

Frequently Asked Questions

What does PPN 006 stand for?

PPN stands for Procurement Policy Note. PPN 006 is a 2021 UK government rule requiring suppliers bidding for central government contracts over £5 million per year to hold a compliant Carbon Reduction Plan.

Who needs a PPN 006 Carbon Reduction Plan?

Any supplier bidding for a UK central government contract over £5 million per year. The requirement is also being adopted by local authorities, NHS Trusts, housing associations, and large private supply chains.

What are the 5 mandatory Scope 3 categories under PPN 006?

Business travel, employee commuting, upstream transportation and distribution, waste generated in operations, and purchased goods and services.

Can I use a cheap online service to generate my Carbon Reduction Plan?

Spend-based online generators are increasingly being rejected by buyers. A compliant CRP requires measured emissions in tCO2e, documented methodology, credible targets, and director sign-off.

Does my Carbon Reduction Plan need a director's signature?

Yes — including full legal name, job title, and date of sign-off.

How often do I need to update my Carbon Reduction Plan?

Annually. It must also be publicly available on your company website at all times.

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