UK government tells businesses to publish carbon reduction plans or lose out on contracts

The companies in the United Kingdom will have to publish their carbon reduction plans and will have to commit to the UK's 2050 net-zero goal before they can bid for government contracts, reported Independent. According to new rules that are announced on World Environment Day, companies will have to publish carbon reduction plans and phase out their existing greenhouse gas emissions such as fuel usage, power consumption and staff travel.

Firms have to publish carbon reduction plans

The decision comes as the UK prepares to host the 26th United Nations Climate Change Conference of the Parties (COP26) in Glasgow in November 2021. According to the cabinet decision, firms that have not committed to net zero emissions would not be considered for government contracts worth more than 5 million pounds ($7.1 million), reported Independent. The government is using its 290 billion pounds of its annual procurement to push businesses into reducing carbon emissions.

Theodore Agnew, Minister for Efficiency and Transformation said that the government spends more than 290 billion pounds on procurement every year. He further added that the government's purchasing power will help to transform the country's "economy to net-zero", reported Independent. He said that the companies would need to report and commit to reducing their carbon emissions before bidding for public work. He said these measures "will help green our economy, while not overly burdening businesses, particularly SMEs." Carbon emissions will be reported using an internationally recognised standard which categorises them under three groups or "scopes".

The 2021 United Nations Climate Change Conference COP26 scheduled to be held in the city of Glasgow from November 1 to 12 in the UK will not be cancelled or postponed, contrary to the reports earlier that alleged that the UK government might delay the meeting due to worsening pandemic across many countries. COP26 President, Alok Sharma, has now told UK MPs that the Boris Johnson government was not looking to postpone the summit and was working to hold it in person, Euronews reported. Although, the UK government spokesperson said that the administration was “closely monitoring” the coronavirus situation.

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