---
title: "Green Lease Clauses for Irish Commercial Leases: Incorporating Circular Economy and Sustainability Principles into a Service Charge Regime, Landlord’s Regulations and Landlord’s Works"
excerpt: 
date: 2024-03-27T14:16:57Z
modified: 2025-07-23T11:21:39Z
file_type: md
permalink: clauses/green-lease-clauses-for-irish-commercial-leases-incorporating-circular-economy-and-sustainability-principles-into-a-service-charge-regime-landlords-regulations-and-landlords-works.html
wpid: 2145
status: publish
type: clause
jurisdiction:
  - Ireland
maintenance-status:
  - Not maintained
practice-area:
  - Real estate and property
sector:
  - Real estate
eleventyComputed:
  clause_child_name: Amélie and Lauri’s Clause
  clause_summary: Clauses for Irish commercial leases incorporating circular economy and sustainability principles into a service charge regime, landlord’s regulations and landlord’s works
  clause_last_updated_date: 2023-01-30
layout: layouts/clause.njk
---

# Green Lease Clauses for Irish Commercial Leases: Incorporating Circular Economy and Sustainability Principles into a Service Charge Regime, Landlord’s Regulations and Landlord’s Works

## Child’s name

Amélie and Lauri’s Clause

## Summary

Clauses for Irish commercial leases incorporating circular economy and sustainability principles into a service charge regime, landlord’s regulations and landlord’s works

## What this clause does

Reduces a building’s carbon footprint, running costs and futureproof owners/occupiers against the transition risk of incoming regulation while also improving a business’ reputation in the market, commanding higher rent or sale prices and attracting talent drawn by climate-conscious values.

## Clause Content

\[*Drafting note: Capitalised terms relate to either a defined term in these clauses or a defined term in the main lease that these clauses are designed to be inserted into*.\]

**1. Landlord regulations**

The Landlord may from time to time make \[and vary\] such \[reasonable\] regulations as the Landlord shall think fit \[in accordance with the principles of good estate management\] \[and the Service Charge Code\] \[*Drafting note: Client instruction will be required to confirm whether the Service Charge Code is to apply*\] for:

1.1 … \[*Drafting note: These provisions can be integrated into any landlord regulations clause*\];

1.2 \[sustainability, including waste management, energy use (lighting, heating and appliances), air circulation, water use, use of products (for cleaning or otherwise) and selection of materials and furniture for use in the Demised Premises and/or the Building\];

1.3 Environmental Performance; and/or

1.4 implementing the \[Environmental Performance Plan/ Efficiency Objective\]. \[*Drafting note: This subclause may be included where an Environmental Performance Plan or Efficiency Objective applies. It can be amended to refer to other environmental guidelines, principles or systems, as applicable.*\]

**2. Compliance with regulations**

\[*Drafting note: This clause requires the Tenant to comply with rules and regulations relating to sustainability, without specifying the regulations to apply.*\]

The Tenant shall comply with (and shall procure compliance by any under-tenant or occupier with) all \[reasonable\] rules and regulations concerning the management, operation and security of the Demised Premises notified to the Tenant from time to time, as though the rules and regulations were set out in full in this Lease, including those relating to \[sustainability, including waste management, energy use (lighting, heating and appliances), air circulation, water use, use of products (for cleaning or otherwise) and selection of materials and furniture for use in the Demised Premises and/or the Building\]/ \[the Efficiency Objective\].

**3. Service charge**

 … \[*Drafting note: These provisions can be integrated into the Service Charge provisions.*\]

3.1 \[**●**\] *\[Drafting note: Insert the relevant standard of accreditation and/or the relevant guidelines\] – \[Management Company and\] Landlord’s rights*

\[Subject to and in accordance with the principles of good estate management\] the Landlord \[and/or the Management Company\] will be entitled, in \[its/ their\] absolute discretion to maintain the Building to a standard of \[●\] \[*Drafting note: Insert the relevant standard of accreditation, such as LEED Platinum/ Gold/ Silver/ Certified, BREEAM etc.*\] rated office accommodation in the \[Dublin\] marketplace and/or to a standard compliant and commensurate with \[●\] \[*Drafting note: Insert any relevant guidelines such as GRESB, etc.*\] and\[, subject to the provisions of the Service Charge Code,\] \[*Drafting note: Client instruction will be required to confirm whether the Service Charge Code is to apply*\] will be entitled to consider this standard and/or these guidelines when deciding on matters relating to the provision, operation, maintenance, repair, replacement, renewal, cleansing, decoration and amendment of any matters falling within the scope of the Services as outlined in Schedule \[●\] \[*Drafting note: This Schedule is not included in these clauses*\] of this Lease.

3.2 **Delivery of Services**

Subject to payment by the Tenant of the Service Charge as provided for in clause \[*insert clause number for service charge payment*\] and to the rights granted by clause \[*insert clause number(s) for landlord’s right to carry out works to the Retained Parts or Demised Premises*\], the Landlord \[and/or the Management Company\] agree\[s\] where practicable to use \[reasonable\] endeavours \[if and\] when delivering the Services to:

(a) \[comply with the Service Charge Code;\] \[*Drafting note: Client instruction will be required to confirm whether the Service Charge Code is to apply*\]

(b) comply with the \[Environmental Performance Plan/ Efficiency Objective\];

(c) comply with all Environmental Laws;

(d) \[maintain and share the Environmental Performance Data in respect of the Building;\] \[*Drafting note: Include where no other data sharing clause in the Lease*\] and

(e) use Materials.

3.3 **Service Providers**

\[Subject to and in accordance with the principles of good estate management\] \[*Drafting note: Consider inserting if acting for the Tenant*\] the Landlord \[and/or the Management Company\] shall use \[reasonable\] endeavours to ensure that all third party service providers in relation to the \[Demised Premises/ Building\] comply with \[●\] \[*Drafting note: Insert the relevant standard of accreditation such as LEED Platinum/ Gold/ Silver/ Certified, or BREEAM etc.*\] standards and/or \[●\] \[*Drafting note: Insert the relevant guidelines such as GRESB, etc.*\].

3.4 **Service Charge Items**

*\[Drafting note: These are sample Service Charge items only and, depending on the overall format/ style of the Lease, can be moved into the relevant schedule which lists all the Services being provided under the Service Charge provisions. If acting for the Tenant, you may wish to request: (i) a Service Charge budget itemising 'green' Services and identifying savings and/or costs which are over and above the norm; and/or (ii) information on the balance of the sinking fund, if any.\]*

(a) The costs necessary to retain and maintain the Certification and/or the BER (excluding any ratings specific to any Lettable Areas);

\[*Drafting note: This clause (a) requires the Landlord to retain and maintain the Certification and the BER as part of the provision of the Services. However, this may not constitute an absolute requirement if the Service Charge provisions contain an element of landlord discretion in the provision of the Services. If an absolute landlord obligation to retain and maintain the Certification and the BER is required, this might more appropriately be achieved by a positive covenant on the Landlord’s part.*\]

(b) Improving, providing, maintaining, repairing, operating, inspecting, servicing, overhauling, cleaning, lighting and (as and when necessary) renewing or replacing any initiatives, services, equipment which in the \[reasonable\] opinion of the Landlord will be in accordance with the \[Efficiency Objective/ Environmental Performance Plan\] for the Building and will benefit tenants of the Building;

(c) The carrying out of any work for the improvement, maintenance or sustainability of the \[Common Areas/ Retained Parts\], including (but not limited to) for Improvement in Environmental Performance of the \[Common Areas/ Retained Parts\];

(d) \[●\] \[*Drafting note: Insert any building-specific green services such as solar panels or rainwater harvesting*\].

3.5 **Service Charge Exclusions**

There shall be excluded from any element of the Service Charge any costs incurred by the Landlord or the Management Company in relation to:

(a) … \[*Drafting note: These provisions can be integrated into any Service Charge exclusion clauses*\];

(b) all costs of whatever description (whether by way of capital expenditure or otherwise) incurred in connection with obtaining the Original Rating and/or any enhanced Certification and/or enhanced BER, it being acknowledged that the Landlord shall bear the costs of obtaining the Original Rating and/or any enhanced Certification of the Building and/or enhanced BER (excluding in each case any ratings specific to Lettable Areas) **provided that** the costs necessary to retain and maintain the Certification and/or the BER of the Building (excluding in each case any ratings specific to Lettable Areas) shall form part of the Services.

**4.** **Landlord’s works to Retained Parts**

4.1 The Landlord shall be entitled to carry out works \[at the Landlord’s expense\] \[*Drafting note: Alternatively, such works may be included in the schedule of Services so that the costs of same are included in the Service Charge*\] to the \[Building/ Common Areas/ Retained Parts\] (excluding any elements the subject of existing leases or currently occupied by a party other than the Landlord) and the plant and equipment serving the Building \[including, for the avoidance of doubt, the Demised Premises where not exclusively serving the Demised Premises\], which the Landlord\[, acting reasonably,\] determines are necessary to maintain and/or improve the Environmental Performance of the Building, Common Areas, Retained Parts and/or the Demised Premises \[and/or\] the plant and equipment serving the Building \[in compliance with the Landlord’s obligations in that regard\] \[having regard to the Environmental Performance Plan/ the Certification/ the Efficiency Objective\] \[*Drafting note: Insert reference to other guidelines or framework as may be agreed between the Landlord and Tenant*\] notwithstanding any \[temporary\] interruption in the provision of the Services by or on behalf of the Landlord \[provided always that the Landlord shall use \[reasonable\] endeavours to minimise any disruption to the Tenant’s use and enjoyment of the Demised Premises and any interference to the provision of the Services\].

4.2 In carrying out works to the \[Building/ Common Areas/ Retained Parts\] (excluding any elements the subject of existing leases or currently occupied by a party other than the Landlord) and the plant and equipment serving the Building \[including, for the avoidance of doubt, the Demised Premises where not exclusively serving the Demised Premises\], the Landlord:

(a) shall comply with the \[Environmental Performance Plan/ Efficiency Objective\];

(b) shall comply with all Environmental Laws; and

(c) agrees where practicable to use \[reasonable\] endeavours to use Materials. \[*Drafting note: The inclusion of such an innovative landlord obligation would require careful consideration. Landlords may wish to discuss its inclusion and the hierarchy of materials set out in the definition of Materials with their technical advisors.*\]

**5. Landlord’s right of access to maintain/ improve environmental performance**

5.1 The Tenant agrees to permit the Landlord and/or its agents and all persons authorised by the Landlord at all reasonable times on giving reasonable prior \[written\] notice to the Tenant (save in cases of emergency where no notice is required) to enter and remain on the Demised Premises (with or without workmen, contractors, materials and equipment) to\[, at the Landlord’s expense\] maintain and/or improve the Environmental Performance of the \[Demised Premises/ \[and/or the\] Building\] \[**provided that** such works cause as little damage as possible to the Demised Premises and, when complete, do not adversely affect the Tenant’s beneficial use, enjoyment and occupation of the Demised Premises\]. \[*Drafting note: This might be appropriate in a short-term lease where the tenant may not otherwise have covenanted to carry out works to maintain or improve the Environmental Performance, or committed to an Environmental Performance Plan, or where the Landlord desires to carry out works not contemplated by, or over and above, any agreed plan or Tenant covenants.*\]

5.2 In carrying out works to the Demised Premises, the Landlord:

(a) shall comply with the \[Environmental Performance Plan/ Efficiency Objective\];

(b) shall comply with all Environmental Laws; and

(c) agrees where practicable to use \[reasonable\] endeavours to use Materials.

**6.** **Extending the landlord’s rights of access and to do works**

\[*Drafting note: The Landlord’s rights of access to, and to carry out works within, the Demised Premises are generally limited and may not permit entry to carry out improvements which improve the Environmental Performance of the Building. The Lease should be checked to see whether it already contains sufficient rights to enable the Landlord to review and measure in this way, or to carry out such improvements. These rights may appear in the reservations to the Landlord, in the Tenant’s covenants to permit access and/or in the Landlord’s covenants to provide Services. If not, then the first part of this clause should be used to confer the necessary rights.*\]

6.1 \[Subject to the Landlord Access Protocol, the\] \[The\] Tenant agrees to permit the Landlord and/or its agents and all persons authorised by the Landlord \[at all reasonable times on giving reasonable prior written notice to the Tenant (save in cases of emergency where no notice is required) \[*Drafting note: Include where the Lease does not contain a Landlord Access Protocol*\]\] to enter and remain on the Demised Premises (with or without workmen, contractors, materials and equipment) for any of the following purposes:

(a) to carry out an Environmental Audit;

(b) to review and/or measure the Environmental Performance Data relating to the Demised Premises save where up-to-date Environmental Performance Data has already been provided to the Landlord’s \[reasonable\] satisfaction by the Tenant in accordance with clause \[*insert clause number for data sharing and reporting*\], unless such entry is for the purposes of verifying the information provided;

(c) to ascertain whether the Tenant’s obligations under the Green Clauses are being duly observed and performed and to exercise any rights reserved by this Lease; and

(d) where the Tenant is in breach of its obligations under the Green Clauses, and the Tenant has failed to remedy such breach(es) within \[twenty (20)\] Working Days (or if in the reasonable opinion of the Landlord or the Environmental Consultant there is any emergency, then within such lesser period as may be practicable) of receiving written notification of the breach from the Landlord, to carry out, at the Tenant’s expense, all works which are required by the Landlord\[, acting reasonably,\] to bring the Demised Premises into compliance with the Tenant’s obligations \[and to meet the objectives set out in the Environmental Performance Plan/ to maintain the Certification/ BER\] \[*Drafting note: Insert reference to other guidelines or framework as may be agreed between the Landlord and Tenant*\] and all \[reasonable\] expenses thereby properly incurred and vouched (including \[reasonable\] architects’, surveyors’ and legal fees) together with interest thereon at the Prescribed Rate \[*Drafting note: It is assumed that this is a defined term in the Lease*\] from the date of expenditure shall be a debt recoverable from the Tenant by the Landlord and shall be recoverable as rent payable in arrears.

6.2 In carrying out works to the Demised Premises, the Landlord:

(a) shall comply with the \[Environmental Performance Plan/ Efficiency Objective\];

(b) shall comply with all Environmental Laws; and

(c) agrees where practicable to use \[reasonable\] endeavours to use Materials.

**7. \*Restriction on landlord’s right to do works\*\* – absolute prohibition\*\*\***

The Landlord shall not carry out any works to the Retained Parts or to the plant or equipment \[or services \[*Drafting note: Consider referring to ‘Conduits’ here if it is a defined term in the Lease, and whether the definition is wide enough to capture any green utilities, e.g. solar panels, rain water harvesting etc.*\]\] within and serving the Building which will \[or are likely to\] \[*Drafting note: This would give wider scope for works to be prohibited, which may be preferred by a tenant but resisted by a landlord*\] \[materially\] adversely affect the Certification, Environmental Performance and/or the BER of the \[Demised Premises/ \[and/or the\] Building\] \[and/or would be contrary to the Efficiency Objective/ the objectives set out in the Environmental Performance Plan\] \[*Drafting note: Insert reference to other guidelines or framework as may be agreed between the Landlord and Tenant*\] unless the Landlord\[, acting reasonably\], deems such works to be necessary in accordance with its obligations and/or covenants under this Lease or any Applicable Laws.

\* \[*Drafting note: A tenant with significant bargaining power may seek a right to require the Landlord to carry out environmental improvement works to the Building during the Term at the Tenant’s cost (in addition to any environmental works or systems the Tenant may have negotiated into the building specification for the Landlord’s works under any Agreement for Lease). The inclusion of such an innovative Tenant right would require careful consideration by the Landlord including whether the premises being demised is an entire building or part (in which case the Landlord may need to consider the impact of such a tenant right on other leases/ tenants/ service costs) and how any planning application would be managed.*\]

\*\* \[*Drafting note: Usually the Landlord will be under no constraints as to the works that it can do to the Common Areas of the Building or to the plant and machinery that serves the Building as a whole (except the practical constraint that the Lease may not permit the Landlord to recharge to the Tenant the costs incurred). Sometimes (particularly if the cost can be recharged) the Tenant will want to prevent the Landlord acting in a way that \[materially\] prejudices the Environmental Performance or the BER of the Demised Premises or the Building etc. The Landlord may only be prepared to agree to this for particular types of work, or for works over a particular value.*\]

\*\*\* \[*Drafting note: Consideration could be given to whether a middle ground could be agreed whereby the Landlord could carry out works with the Tenant’s consent, or a further concession by the Tenant whereby the Landlord can do works and agrees to consider, but is not obliged to act upon, or take into account of, suggestions made by the Tenant regarding the works.*\]

**8.** **Tenant rights of entry/ to carry out remedial works/ compliance with notices**

\[*Drafting note: This optional clause may be inserted where there is a landlord’s obligation to achieve a Certification and/or maintain the Original Rating.*\]

\[*Drafting note: These provisions are slightly different to the landlord rights of access in respect of a tenant breach as set out above. A tenant’s right of access and to carry out works on common areas/ retained parts would be an unusual concession by a landlord. The landlord will have the building as a whole to consider and, accordingly, the provisions allow for a longer remediation period (20 Working Days within which to commence carrying out any remedial works as opposed to 20 Working Days to remedy a breach).*\]

If the Landlord is in breach of its obligation to \[achieve the Certification and/or\] maintain the Original Rating for \[the Building/ Common Areas \[and/or\]/ any part thereof\], the Landlord agrees\[, subject to the Tenant Access Protocol,\] to:

8.1 permit the Tenant and/or its agents and all persons authorised by the Tenant \[at all reasonable times on giving reasonable prior written notice to the Landlord \[*Drafting note: Include where the Lease does not contain a Tenant Access Protocol*\]\] to enter \[the Building/ Common Areas/ Retained Parts\] and where required to remain (with or without workmen, contractors, materials and equipment) for the purposes of carrying out an Environmental Audit; and

8.2 execute any repairs or other works identified by the Tenant under clause \[8.1\] for which the Landlord is liable under the provisions hereof, commencing to do so within \[twenty (20)\] Working Days of the date of the service of written notice and thereafter proceeding with all due diligence to complete the works and in case the Landlord shall default in so doing it shall be lawful\[, subject to the Tenant Access Protocol,\] for workmen or others employed by the Tenant \[at all reasonable times having given reasonable prior written notice to the Landlord\] to enter and remain upon \[the Building/ Common Areas/ Retained Parts\] and execute such repairs or other works and all \[reasonable\] expenses thereby properly incurred and vouched (including \[reasonable\] architects’, surveyors’ and legal fees) together with interest thereon at the Prescribed Rate from the date of expenditure shall be a debt recoverable from the Landlord by the Tenant \[and shall be recoverable by offsetting these costs against the rent due\].\*\]\*\*

\* \[*Drafting note: If the Services provided to the Demised Premises do not meet the targets, the Tenant may require the Landlord to carry out actions to ensure compliance with the Original Rating. In default of doing so, this may lead, for example, to the Tenant installing more efficient lighting at the Landlord’s cost. If the Landlord does not pay the relevant costs, the Tenant can offset these costs against the rent due.*\]

\*\* \[*Drafting note: It would be unusual for a landlord to permit such rights but they may be granted to a tenant in a strong negotiating position.*\]
