In March of this year, the Cabinet Office published its first Procurement Policy Note of 2024: Procurement Policy Note (“PPN”) 01/24. This PPN is intended to support decarbonisation in the context of public procurement to help achieve the UK government’s pledge to achieve Net Zero by 2050. 

The PPN provides a Carbon Reduction Contract Schedule with accompanying guidance, containing standard terms and conditions which can be incorporated into Government contracts. These terms and conditions relate to carbon reduction measures and include a framework to monitor and assess a supplier’s decarbonisation performance. There is sector specific drafting included for technology, facilities management and construction contracts. 

PPN 01/24 is applicable to all central government departments, their executive agencies and non-departmental public bodies. However, use of the Schedule by those bodies is optional and should only be included in Government contracts where relevant and proportionate to the subject matter. Nonetheless, it's expected that the Schedule will be incorporated into future versions of the Government's suite of Model Contracts which is likely to significantly increase its use.