Do I need a Carbon Reduction Plan?

You need a Carbon Reduction Plan to bid for central government contracts worth more than £5 million a year including VAT, for NHS contracts above £5 million a year, and for any NHS Supply Chain tender whatever its value. Councils and private customers can ask for one too. Answer three questions to see what applies to your contract.

Updated 15 October 2026 by the Carbon Recycling team. Figures use the official UK government conversion factors and are checked against the current gov.uk guidance.

Buyer	What they ask for
Central government departments, agencies and public bodies	A PPN 006 Carbon Reduction Plan for contracts above £5 million a year, including VAT, as a condition of taking part.
NHS trusts, ICBs and NHS England	A Carbon Reduction Plan above £5 million a year; a Net Zero Commitment below.
NHS Supply Chain	Evergreen Level 1, including a PPN 006 plan, for every tender since 6 April 2026.
Councils, schools, universities, housing associations	Their choice. Many use the PPN 006 format or score carbon as part of social value.
Private companies	No legal requirement, but large customers increasingly ask, especially if they bid for public work.

Frequently asked questions

Who needs a Carbon Reduction Plan?

Suppliers bidding for central government contracts worth more than £5 million a year, including VAT, under PPN 006; NHS suppliers on contracts above £5 million a year; and every supplier tendering through NHS Supply Chain, whatever the value. Other public bodies and private customers can ask for one too, and many do.

Is the £5 million threshold including VAT?

Yes. PPN 006 applies to contracts with an estimated value above £5 million a year including VAT. For a framework or dynamic market, it applies when an individual call-off contract is above £5 million a year.

Do councils need a Carbon Reduction Plan from suppliers?

They don't have to ask. PPN 006 is a central government rule, so councils, schools, universities and housing associations are free to decide. Many ask for a plan in the same format, or score carbon commitments as part of social value, so check each tender.

Is a Carbon Reduction Plan a legal requirement?

No law requires every business to have one. It becomes a requirement when a buyer makes it a condition of a tender, as central government does for contracts above £5 million a year and the NHS does for its larger contracts and NHS Supply Chain frameworks.

What if my NHS contract is under £5 million?

For contracts bought directly by NHS organisations, a published Net Zero Commitment is enough below £5 million a year. NHS Supply Chain tenders need Evergreen Level 1, which includes a full PPN 006 plan, whatever the value.

Do subcontractors need a Carbon Reduction Plan?

The requirement sits with the main supplier, but most pass it down to their own suppliers because their plan has to include business travel, transport and waste that often involve you. Expect to be asked for a plan or your emissions figures.

Do I need a Carbon Reduction Plan?

Who asks for a Carbon Reduction Plan

What's changing in 2027

What goes in a plan

Frequently asked questions

Get your figures and reports done in an afternoon

Sources