The measures which came into force last week apply to all contracts with a value over £5M a year that are put out to tender by central Government departments, executive agencies and non departmental public bodies.

Firms will be required to detail what environmental management measures they have in place and report on where their emissions come from, including some ‘Scope 3’ emissions such as business travel and employee commuting.

They must also demonstrate a commitment to meeting the UK’s net zero target by 2050 at the latest to stand a chance of winning contracts. Government claims to be the first in the world to put this bidding requirement in place.

“Government spends £290Bn a year on procurement and it’s right that we use this spending power to green the economy,” said Cabinet Office Minister Steve Barclay.

The Government’s net zero business champion Andrew Griffith added: “The message to businesses is clear – engaging on net zero is no longer an option but a necessity.”

Civil Engineering Contractors Association chief executive Alasdair Reisner said he was “fully supportive” of efforts to decarbonise the sector. He added: “We look forward to working with our members to ensure the transition to net zero across the entire construction industry is achieved within the Government’s timeframe.

“While decarbonising our sector is undoubtedly the biggest challenge facing industry, it is also an exciting opportunity to implement best practice at all levels of the supply chain, creating green jobs and supporting sustainable economic growth in the long term.”

Construction lawyer Jonathan Hart – a partner at Pinsent Masons – said that while many contractors are already working towards decarbonisation the new procurement rules have the potential to be “a real game changer”.

However he noted a number of possible issues including to what extent a clean large contractor may “conceal a far dirtier supplier chain supporting it on a project”. He added: “Decarbonisation comes with costs: it requires innovation and the risks and expense that go with that. Are procurers – and end users – going to be willing to pay for this?”

In addition he highlighted “a significant skills shortage within the industry as to how to understand and address the requirements of decarbonisation”.

(Photograph: National Highways)