What is a Carbon Reduction Plan?

What is a Carbon Reduction Plan?

A Carbon Reduction Plan (CRP)is a formal report that sets out a public sector supplier’s commitment to reach Net Zero by 2050. It includes:

• A statement of the supplier’s GHG emissions (Scope 1, 2 and some Scope 3)
• Its commitment to Net Zero by no later than 2050, and interim emission targets.
• The supplier’s current and planned measures to cut emissions and reach Net Zero.

In UK public procurement, Carbon Reduction Plans originated in Procurement Policy Note (PPN) 06/21 and, from 24 February 2025, are governed by PPN 006 (which updates 06/21, although with no major changes).

Central government departments, their executive agencies and non-departmental public bodies must require a compliant CRP at selection stage for relevant procurements, typically contracts worth £5 million or more per year. If you want to bid for those contracts, you need a valid CRP.

What does a Carbon Reduction Plan include?

Carbon Reduction Plans are required to follow the specific format set out in the government's template. In short, a CRP must cover:

1. Measure your emissions. You must report your UK Scope 1 and Scope 2 emissions, plus a defined subset of Scope 3 categories: business travel; employee commuting; waste generated in operations; upstream transportation and distribution; and downstream transportation and distribution. The figures should align to the GHG Protocol and the Cabinet Office technical standard.
2. Make a Net Zero commitment. Your organisation must formally commit to achieving Net Zero by 2050 at the latest for UK operations. This is a pass/fail selection criterion under the PPN.
3. Set targets and outline measures. A Carbon Reduction Plan must include emission reduction targets (your projected or planned reduction over time) and describe the carbon reduction measures you'll take to achieve that(for example, certified energy management, renewable electricity, fleet electrification, supplier engagement).
4. Governance. The Carbon Reduction Plan must be approved and signed at board level (or by a director where there is no board), published on your UK website, and updated at least annually so that data and actions stay current. You will typically provide a public URL to your CRP at selection stage.

When is a Carbon Reduction Plan required?

Under PPN 006, in-scope contracting authorities apply the requirements to procurements advertised on or after 24 February 2025. For procurements commenced before that date, the earlier PPN 06/21 framework applies. Sector bodies can go further; for example, the NHS requires CRPs across a wider range of procurements. Always check the specific tender documents.

What does a Carbon Reduction Plan look like?

The tangible output is a concise, board-approved CRP document - often 2–5 pages. You publish it on your website, clearly signposted, keep it up to date every 12 months or sooner, and provide the URL in bids.

Why does having a CRP matter?

Having a compliant Carbon Reduction Plan reduces bid risk: failing to include a compliant, up-to-date, publicly available CRP can prevent you from passing selection on major UK government contracts. A robust CRP also helps suppliers quantify their footprint, prioritise initiatives, and demonstrate credible progress to other buyers and stakeholders.

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