PPN 016 (PA 2023)

PPN 016 Carbon reduction contract schedule

In: Plan > Strategy and plan

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

In-scope organisations should consider from an early stage whether including the carbon reduction schedule would be relevant to the subject matter of the contract and whether it would be proportionate to incorporate the terms into the contract.

Key considerations at this commercial stage

In-scope organisations should:

  • ensure that the appropriateness of the inclusion of the Carbon Reduction Schedule is considered from an early stage
  • consider the inclusion of the Carbon Reduction Schedule alongside broader sustainability obligations
  • be mindful of the fact that it may not be appropriate to include the Carbon Reduction Schedule in all contracts and that it may not be proportionate to apply the Carbon Reduction Schedule to lower-value contracts or contracts of low criticality

This section is under development.