- All applications for central government contracts worth more than £5 million per year, including VAT, must meet climate-related conditions set out in Procurement Policy Note (PPN) 06/21.
- Bidders must submit a Carbon Reduction Plan that reports their current greenhouse gas emissions for Scopes 1, 2, and 3, sets out specific carbon reduction measures, commits to reaching Net Zero by 2050, and follows the government’s technical standard for Carbon Reduction Plans.
- This is a mandatory condition of participation and must be met before the company’s ability to provide the tender requirements is evaluated. This is regardless of whether the tender is for construction work, defence projects or digital services.[1]
- The bitumen and asphalt used to make roads and fill potholes come from oil refining; the machinery is powered by diesel; the helmets and hi-vis jackets are made from polymers derived from oil. But the road-mending company still needs to complete a carbon reduction plan before it can even be considered!
- This drives small and micro companies out of the running for government and local council contracts as they can’t afford to employ someone to write the plan and enforce compliance.
[1] PPN 006: Taking account of Carbon Reduction Plans in the procurement of major government contracts – GOV.UK
