Carbon Reduction Plans: Don't Get Caught Out

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This is a reminder to all Central Government Departments, Executive Agencies and Non Departmental Public Bodies that the provisions of PPN 06/21 came into effect on 30 September 2021.

What has changed?

A part of the selection criteria, authorities must require suppliers to provide a Carbon Reduction Plan setting out:

  • the supplier’s commitment to achieving Net Zero by 2050 in the UK; and
  • the environmental management measures that they have in place and which will be in effect and utilised during the performance of the contract.

Authorities must assess whether a bidder has taken steps to understand their environmental impact and carbon footprint relevant to the delivery of the contract. Further details of what must be included in a Carbon Reduction Plan, the evaluation methodology and grounds for exclusion can be found in the accompanying Government guidance.

When does PPN 06/21 apply?

PPN 06/21 applies to procurements with an anticipated contract value of over £5 million per year (excluding VAT) advertised on or after 30 September 2021. It also applies to framework agreements and DPS where the individual value of any contract to be awarded under the framework agreement or DPS is more than £5 million per year (excluding VAT). It does not apply to procurements commenced before 30 September 2021.

Government guidance confirms that in some exceptional circumstances it may not be relevant or proportionate to apply PPN 06/21, including:

  • where there is a civil emergency; and
  • where the market for a contract of a specific type is distorted/struggling to such a significant extent that delivery of public services is likely put at risk, or value for money is compromised.

What should authorities do now?

Authorities should review their procurement portfolios to identify any procurements likely to be caught by provisions of PPN 06/21, and update any procurement documents to include the relevant selection criteria and evaluation methodology. If an authority believes that the provisions of PPN 06/21 do not apply to a procurement, it should keep detailed records of its justifications for this decision.

For further details on PPN 06/21 and its application, or any other public sector or procurement queries, please contact our Public Sector team who will be more than happy to assist you.

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