Decarbonization in Government Contracts

Understanding the UK's New Carbon Reduction Schedule

In March 2024, the UK Government took a significant step towards its net-zero goals by introducing a new Carbon Reduction Schedule (CRS) as part of Procurement Policy Note (PPN) 01/24. This initiative aims to integrate decarbonization efforts into government contracts, particularly in the construction and infrastructure sectors. In this blog post, we'll explore the key aspects of CRS, its implications for suppliers, and what it means for the future of sustainable procurement in the UK.

1. The Scope and Purpose of the Carbon Reduction Schedule

The CRS provides a framework for establishing, monitoring, and assessing a supplier's decarbonization performance under government contracts. It applies to various public sector entities, including Central Government Departments, Executive Agencies, and Non-Departmental Public Bodies. While primarily targeting these "In-Scope Organizations," the schedule can be adopted by other public sector contracting authorities as well.

Key components of the CRS include:

- Contract-specific greenhouse gas (GHG) emissions reporting

- Setting emission reduction targets

- Monitoring and verifying GHG emission reductions throughout a project's lifecycle

2. Building on Previous Initiatives

The CRS doesn't exist in isolation; it builds upon and aligns with several existing policies and guidelines:

- PPN 06/21: This earlier policy required suppliers bidding for major government contracts (worth over £5 million) to confirm net-zero commitments and publish organizational Carbon Reduction Plans.

- The Construction Playbook: The CRS reinforces themes from this document, such as building smartly and sustainably, and promoting "green" delivery.

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