Irish Green Lease Clauses: Odhran’s Clause

ByrneWallace LLP welcomed the launch by The Chancery Lane Project (“TCLP”) of 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. This article focuses on Odhran’s Clause. Future articles will discuss Emily and Tom’s Clause and Amélie and Lauri’s Clause. 

Odhran’s Clause

Odhran’s Clause promotes co-operation between landlords and tenants in relation to the environmental performance of buildings. Reducing operational energy use and demand in buildings is important for realising net zero targets in the built environment. Odhran’s Clause contains a number of alternative approaches for landlords and tenants to collaborate to improve the environmental performance of buildings (including their carbon footprint).  

Odhran’s Clause includes:

• co-operation provisions whereby the landlord and tenant agree to co-operate with each other to identify appropriate strategies to improve the environmental performance of buildings, including the implementation of an environmental performance plan, managing waste and sharing data;
• provisions for the setting up of a building management forum to agree strategies for sharing environmental performance data, agreeing targets and strategies and reviewing the environmental performance of the building and the premises demised by the lease; and
• provisions in relation to accessing the demised premises and metering the tenant’s energy use.

The clauses are 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.