PPN 016 (PA 2023)

PPN 016 Carbon reduction contract schedule

In: Define > Sourcing strategy

Overview

This PPN applies to all central government departments, their executive agencies and non-departmental public bodies (collectively referred to as in-scope organisations) when awarding public contracts for goods, and or services, and or works, other than special regime contracts. Other public sector contracting authorities may wish to apply the approach set out in this PPN.

The carbon reduction schedule published alongside this PPN contains standard terms and conditions to support contract specific decarbonisation objectives. The carbon reduction schedule also provides a framework to monitor and assess the supplier’s decarbonisation performance. These include contract specific greenhouse gas (GHG) emissions reporting, setting supplier GHG emissions reduction targets and monitoring and reducing GHG emissions throughout the life of the contract though a supplier GHG emissions reduction plan.

Use of the carbon reduction schedule is optional and should be included where relevant to the subject-matter of the contract and proportionate to do so. It may not be appropriate to include the carbon reduction schedule in all contracts.

This PPN supplements the existing obligations of PPN 006 Taking account of Carbon Reduction Plans in the procurement of major government contracts.

Note: This PPN replaces PPN 01/24 for procurements commencing on or after 24 February 2025.

Objective at this commercial stage

When assessing the appropriateness of including the carbon reduction schedule, in-scope organisations should engage with the market to reach a view on the understanding (i.e. maturity) of carbon reduction initiatives and ability to introduce effective measures.

Key considerations at this commercial stage

In-scope organisations should:

  • engage with the market to reach a view on the understanding (i.e. maturity) of carbon reduction initiatives and ability to introduce effective measures when assessing the appropriateness of including the carbon reduction schedule
  • test their proposed GHG emissions reporting requirements with potential suppliers as part of their preliminary market engagement
  • assess how burdensome any optional requirements to cascade obligations down the supply chain might be

This content is under development.