Net Zero requirements for companies bidding for major contracts come into force, with PPPs a “sharp focal point” for the green agenda.
Under the new system, any firm that bids to be part of a contract worth more that £5m per year must commit to achieving Net Zero by 2050. The new requirements will expand the amount of information that companies have to report to Scope 3 – which includes a significant portion of a firm’s carbon emissions such as business travel, waste and commuting.
The new rules, which have come into force today, will “drive forward” the government’s decarbonisation agenda while “striking a balance” to not exclude or overburden smaller companies, according to the government.
The UK is the first country to introduce rules of this kind, and hopes other countries will follow suit after COP 26 this year.
“This new policy will provide a sharp focal point for public-private partnerships,” said Tom Thackray, the CBI’s director of decarbonisation.
“Working with the public sector, [the private sector] can demonstrate their excellence and underline the world-leading progress many industries have already made.”
Partnerships Bulletin and Projects Bulletin have recently published an in-depth report looking at the Net Zero agenda, click here to read the Net Zero Partnerships Report 2021.