PPN 01/24 Carbon Reduction Contract Schedule

PPN 01/24 is a recent procurement policy note issued by the UK Government. It specifically targets carbon emissions and builds upon the previous PPN 06/21, which required suppliers bidding on large contracts to publish a carbon reduction plan. The key points are:

1. Net Zero Commitment: In 2019, the UK Government amended the Climate Change Act 2008, introducing a target of at least a 100% reduction in the net UK territorial carbon account by 2050—commonly known as the ‘Net Zero’ target.
2. Carbon Reduction Contract Schedule: The Cabinet Office has developed a standard Carbon Reduction Contract Schedule containing standard Terms and Conditions (T&Cs). These T&Cs are intended to be considered alongside broader sustainability obligations and included in Government contracts where relevant and proportionate. The schedule aims to support the Net Zero commitment and reduce greenhouse gas (GHG) emissions through public procurement.
3. Scope and Dissemination:
• The PPN applies to all Central Government Departments, their Executive Agencies, and Non-Departmental Public Bodies (referred to as ‘In-Scope Organisations’).
• In-scope organisations can apply the provisions of this PPN with immediate effect.
• Other public sector contracting authorities may also consider applying the approach set out in this PPN.
4. Carbon Reduction Schedule Actions:
• The Carbon Reduction Schedule provides standard T&Cs to support contract-specific decarbonisation objectives.
• It includes provisions for contract-specific GHG emissions reporting, setting supplier GHG emissions reduction targets, and monitoring and reducing GHG emissions throughout the contract’s life.
• Use of the Carbon Reduction Schedule is optional and should be included where relevant and proportionate.
5. Assessment Criteria:
• Before including the Carbon Reduction Schedule in a contract, in-scope organisations should assess:
• Their understanding (maturity) of carbon reduction initiatives.
• The supplier’s understanding (maturity) of carbon reduction initiatives and ability to introduce effective measures.
• The value and estimated carbon GHG emissions linked to the contract.
• The criticality of the contract.
6. Guidance and Incorporation:
• Further guidance on applying the Carbon Reduction Schedule is available alongside the PPN.
• The Carbon Reduction Schedule is expected to be incorporated into future iterations of the suite of Model Contracts.

In summary, PPN 01/24 emphasises carbon reduction in government contracts, aligning with the UK’s commitment to achieving Net Zero by 2050

For more details, you can refer to the full PPN 01/24 document.