Introduction: Why Carbon Reduction Matters in Procurement

If you're a business looking to secure public sector contracts in Wales, it's crucial to understand WPPN 06/21, the Welsh Government's response to Procurement Policy Note 06/21 on Carbon Reduction Plans. The decision to align with the UK government's approach is part of Wales' broader strategy to meet its Net Zero carbon emissions target by 2050.

In this guide, we'll discuss the Welsh version of PPN 06/21, differences vs. the UK government's approach, and what you need to know to stay competitive in Welsh public sector RFPs.

What is a Carbon Reduction Plan or PPN 06/21?

Given public sector spending is estimated at almost half of UK GDP, there's a big opportunity for government to decarbonise by requiring its suppliers to take action on carbon emissions. Step up Procurement Policy Note 06/21 (PPN 06/21), which mandates that public sector suppliers measure a compliant carbon footprint and have a plan in place to reduce emissions in order to be eligible to bid for for large contracts (>£5m average annual value per year excl. VAT).

For NHS contracts, the contract value threshold was waived in April 2024, meaning a Carbon Reduction Plan is required across the board (though there remains a rather vague element of discretion from the contracting authority). You can read about this in detail in our dedicated NHS article for NHS suppliers.

So, what does PPN 06/21 require from you? In a nutshell, businesses need to complete the CRP template (found here) with accurate data and high quality supporting information, and publish it on their website. The information needed consists of 5 key steps:

1. Confirmatory statement of Net Zero target
2. GHG Protocol compliant emissions data (baseline and latest year)
3. Emission targets
4. Emission reduction initiatives
5. Sign off

We've written an in depth article, setting out exactly how small and medium sized businesses can comply with PPN 06/21, here.

Does PPN 06/21 apply to Welsh Public Sector contracts?

In March 2021, the Environment (Wales) Act 2016 was updated to include Wales’ commitment to a Net Zero UK by 2050. In the nearer term, the Welsh Government is targeting a Net Zero public sector by 2030. What's clear from the Welsh Public Sector's ambitions (which you can read in detail here) is that it views its supply chain (including you - its supplier) as vital. Rightly so, as value chain or Scope 3 emissions account for >80% of a typical carbon footprint. In short, public sector suppliers are 'critical to achieving the WPS journey to net zero by 2030.' The obvious next question - how to engage suppliers to decarbonise?

When the UK Government launched the Carbon Reduction Plan as effective from September 2021, it left it up to the devolved administrations to choose whether or not to apply the same rules. The Welsh Government opted to follow suit, starting in April 2022, introducing WPPN 06/21 along essentially the same lines.

How is PPN 06/21 different in Wales versus England?

While WPPN 06/21 is based on the UK’s PPN 06/21, there are a couple of minor nuances to consider:

• ‍Contract Threshold: In Wales, the threshold for submitting a CRP is £6 million average annual contract value including VAT, while in the UK (excluding Wales), the threshold is £5 million average ACV excluding VAT. This means that for Welsh contracts, contracting authorities (and suppliers) must account for VAT when determining whether a CRP is required.

• The template: Whilst use of the CRP template is 'strongly recommended' in Wales, it isn't strictly required as with the UK Government's rules. Our advice - stick to the template. Providing your information in a consistent format will make checking and approval more efficient, quicker, as well as easier for the contracting authority you're hoping to please.

And that's it! Suppliers to both UK and Welsh public sectors will be pleased to know that the rules are closely aligned, reducing the admin burden you face in prepping RFPs. Your Carbon Reduction Plan is applicable in Wales, as well as the rest of the UK.

How Seedling Can Help

At Seedling, we're experts in helping teams comply with PPN 06/21 and WPPN 06/21.

We make it easy to collect the business data you need. We then translate that data into a high quality, verified carbon footprint that complies with the GHG Protocol.

With our software plus one-to-one support from an expert, you can develop a Carbon Reduction Plan you have confidence in, and have more time to focus on project delivery.

We'll help you transform the CRP from an obstacle / tick box into a value-add exercise with demonstrable ROI.

We'd love to hear from you, so get in touch at hello@seedling.earth