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Tue June 18 2024

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Tick green box for government contracts

1 Oct 21 New rules have come into force requiring any company bidding for government contracts worth more than £5m a year must say they will be net zero by 2050.

All government suppliers will have to produce a carbon reduction plan, setting out where their emissions come from and the measures that they have in place to reduce them.

Without a net zero statement, contractors will not even be allowed to bid for central government work.

Chancellor of the Duchy of Lancaster Steve Barclay said: “These new rules show our bold and ambitious agenda to achieve net zero by 2050, protecting ourselves and future generations. Government spends £290bn a year on procurement and it’s right that we use this spending power to green the economy. Working arm-in-arm with business, we are taking giant strides to ensure this country is building back greener and tackling climate change.”

CBI’s director of decarbonisation, Tom Thackray, said: “The scale and breadth of spend makes public sector procurement an essential tool in driving net zero progress across all sectors and regions of the country. This new policy will provide a sharp focal point for public-private partnerships.”

The measures will apply to all central government departments as well as their executive agencies and non-departmental public bodies.

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