Climate clauses now in government contracts

On 7 September 2026, The Chancery Lane Project (TCLP), a UK-based legal nonprofit, celebrated a remarkable achievement in promoting climate-aligned contracting. Its model clauses have now been integrated into the UK Government's Model Services Contract (MSC), representing a significant move towards mainstreaming environmental considerations in public procurement. The MSC serves as the Government's standard form agreement for high-value and complex service contracts, usually those exceeding £20 million.

Included in the MSC is an optional Schedule 28 on carbon reduction which features two mechanisms developed from TCLP's innovative clause library. The first is a gain-share mechanism based on Jess & Rory's Clause, designed to incentivise suppliers who exceed emissions reduction targets, allowing contracting authorities to share in the value generated from these additional carbon savings. The second mechanism is a net zero contract modification procedure adapted from Luna's Clause, enabling either party to propose changes to the contract if more sustainable practices become available over time.

This milestone marks the culmination of several years of effort by TCLP, during which its model clauses transitioned from an open-access library to becoming part of UK procurement policy and now the Government's standard contractual framework. As Ben Metz, Executive Director of The Chancery Lane Project, expressed, "This is exactly what The Chancery Lane Project was created to achieve. We work with our global community of volunteer lawyers to develop practical legal solutions that can be adopted at scale."

The inclusion of these clauses in the Model Services Contract follows the earlier government adoption of a carbon reduction schedule through Procurement Policy Note 01/24. This policy was later refined to align with the Procurement Act 2023 before being officially incorporated into the MSC's Schedule 28. Recent updates to the Government's Social Value Model further highlight the significance of contractual mechanisms for achieving environmental outcomes. Although environmental sustainability is not a central pillar of the Social Value Model, it remains a focal point through various procurement policy notes and contractual provisions.

While the implementation of Schedule 28 is optional and at the discretion of contracting authorities, its incorporation into a widely used standard contract signifies a critical step in embedding climate considerations into public procurement practices. The ready-made mechanisms provided by TCLP ease the path for authorities to integrate emissions reduction strategies without needing to develop bespoke provisions.

Ben Metz also noted that as contractual requirements for climate considerations become increasingly prevalent, "standard contract provisions such as Schedule 28 will become an increasingly important way of delivering carbon reduction across public procurement." Public procurement in the UK stands out as a potentially powerful driver for emissions reduction. By embedding practical climate mechanisms into standard contracts, TCLP and the Government are taking decisive steps to influence not only public sector suppliers but also the broader supply chains that contribute to public service delivery.