Procurement Policy Note: Carbon Reduction Contract Schedule

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The latest Procurement Policy Note (PPN) underscores the UK Government’s commitment to addressing climate change by integrating carbon reduction goals into public procurement contracts.

With the introduction of the ‘Net Zero’ target, aiming for a 100% reduction in the net UK territorial carbon account by 2050, the PPN emphasises the importance of aligning procurement practices with environmental objectives.

It introduces a Carbon Reduction Contract Schedule developed by the Cabinet Office, offering standard Terms and Conditions (T&Cs) to support decarbonisation objectives in government contracts. These provisions include monitoring and assessing supplier performance in reducing greenhouse gas (GHG) emissions throughout the contract lifecycle. While optional, the PPN encourages in-scope organizations to assess their and their suppliers’ capabilities and understandings of carbon reduction initiatives before incorporating the schedule into contracts. This initiative reflects the UK’s global leadership in climate action and aims to further integrate carbon reduction efforts into public procurement practices, contributing to the broader goal of mitigating climate change impacts.