Irish Green Lease Clauses: Amélie and Lauri’s ClauseTuesday, 21 February 2023
In the final article in our series on Irish green lease clauses, we focus on provisions incorporating circular economy and sustainability principles into a service charge regime, landlord’s regulations and landlord’s works, together known as Amélie and Lauri’s Clause.
The Chancery Lane Project (“TCLP”) has launched a suite of Irish green lease clauses for use in commercial leases in Ireland. ByrneWallace LLP, together with Arthur Cox LLP and Mason Hayes & Curran LLP, spearheaded the development of this suite of green lease clauses by the Irish Property Working Group of TCLP.
The suite of clauses is divided into three sets, named after children to recognise that our actions to combat the climate crisis will benefit future generations.
Amélie and Lauri’s Clause includes:
- tenant’s covenant to comply with landlord regulations relating to sustainability, waste management, environmental performance etc;
- sample environmental performance related items in the service charge costs;
- requirement for landlord/management company to use [reasonable] endeavours when delivering services to comply with the environmental performance plan/efficiency objectives, to maintain and share environmental performance data and to incorporate circular economy principles by prioritising the use of re-used, reclaimed, sustainable, recycled or recyclable products or materials;
- landlord’s right of access to the demised premises to carry out works to maintain or improve environmental performance and to carry out works to remedy a breach by the tenant of its green obligations or to carry out an environmental audit;
- restrictions on the landlord carrying out works which would adversely impact on the certification, environmental performance or BER of the building or which would be contrary to efficiency objectives or objectives set out in any environmental performance plan; and
- tenant’s right to enter and carry out remedial works to the common areas/retained parts in the event of the landlord breaching its obligations to achieve a certification or maintain a rating.
Read our previous articles on Emily and Tom’s Clause and Odhran’s Clause to learn more about the other provisions in the suite of Irish green lease clauses.
The suite of clauses is drafted primarily for use in leases of new office premises in a multi-let building where the tenants contribute to the maintenance of the building common areas via a service charge regime. Some of the clauses may be suitable for use in leases of other types of premises. The clauses should be treated as a menu from which landlords and tenants, working with their solicitors and other professional advisors, can select and tailor clauses that are suitable for their premises and their sustainability goals.
Environmental laws and practices are constantly changing as governments, businesses, NGOs and individuals seek to find solutions to climate change. These clauses are likely to evolve and change over time to reflect changes in law and practice.
The ByrneWallace LLP Property/Real Estate team advises both landlords and tenants on drafting and negotiating green lease clauses. If you would like further information on green lease clauses, please contact Alison O’Sullivan, Michael Walsh or your usual contact on the ByrneWallace LLP Property/Real Estate team.