Climate clause

Green Assured Shorthold Tenancy (AST) Clauses

Toryn's Clause

Green AST clauses to give tenants a modest rental rebate for 'green' household management and give landlords the ability to invest in renewable energy installations while their rentals are occupied.

This is a net zero clause

This clause aligns with Paris Agreement goals, Race to Zero requirements and the Oxford Principles for Net Zero Aligned Carbon Offsetting. For tools and support to use this clause, use our toolkit or join one of our events.

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Why use this?

Clauses that incentivise tenants to occupy a rental property in a sustainable way and allow landlords to install renewable energy solutions at the property while it is still occupied.

Disclaimer - please read

The clauses on this website (and published in our Climate Contract Playbook) have been prepared in good faith on a pro bono basis and are free to download and use. The clauses have been drafted and edited by a variety of lawyers and, as such, the approaches to drafting may not conform to any particular drafting norms. We acknowledge this as a consequence of the collaborative drafting process.

The clauses on this website (and published in our Climate Contract Playbook) are provided on an ‘as is’ basis and without any representation or warranty as to accuracy or that the clauses will achieve the relevant climate goal or any other outcome.

This website (and the Climate Contract Playbook) does not comprise, constitute or provide personal, specific or individual recommendations or advice of any kind, and does not contain legal or financial advice. The clauses are precedents for legal professionals to use, amend and negotiate using their professional skill and judgement and at their own risk.

While care has been taken in the drafting of these clauses, neither The Chancery Lane Project nor any of its contributors owe a duty of care to any party in relation to their preparation and do not accept any liability for any errors or omissions, nor for any loss incurred by any person relying on or using these clauses or any other person. Users should use their own professional judgement in the application of these clauses to any particular circumstance or jurisdiction or seek independent legal advice.

At present, all the clauses are based on the laws of England and Wales. We encourage the conversion of these precedent clauses for use in other jurisdictions.

The clause

Additional Clauses:

23. Rent

23.1 Subject to clause [1.2], the Tenant shall pay rent at an initial rate of £[AMOUNT] per calendar month (Rent) in advance on or before the [DAY] day in each calendar month (Rent Payment Date) to the Landlord.

23.2 The Landlord hereby agrees to reduce the Rent by £[AMOUNT] per calendar month (Green Rent Rebate) in reliance on the following Tenant undertakings (Green Occupation Undertakings):

(a) to purchase electricity and, if available, gas from a renewable/green tariff[, install a smart meter and smart heating controls to monitor their energy use [Drafting note: If not already installed by the Landlord]] and minimise energy use as far as possible (for example by turning appliances off standby mode);

(b) to replace existing LED light bulbs with new LED light bulbs as required from time to time [Drafting note: Assumes all light bulbs in the Property are already LEDs];

(c) to recycle as much as possible and otherwise minimise household waste as far as possible;

(d) to minimise water use as far as possible [for example by installing water efficient shower heads)[Drafting note: If not already installed by the Landlord]].

23.3 The Landlord reserves the right to require the Tenant to provide reasonable evidence (for example, copies of recent utility bills) to demonstrate its compliance with the Green Occupation Undertakings.

23.4 If, in the Landlord’s reasonable opinion, it does not believe that the Tenant has been complying with the letter and/or spirit of the Green Occupation Undertakings, the Landlord may withdraw the Green Rent Rebate at its discretion. In this event, the Rent shall return to the amount stated in clause [1.1] with effect from the next Rent Payment Date

24. Landlord’s right to enter the Property

24.1 Subject to clause [2.2], the Landlord reserves the right for the Landlord, or any person acting on behalf of the Landlord, to enter the Property on giving reasonable prior notice to the Tenant to investigate the possibility of installing renewable energy or energy efficiency solutions (for example installing a more efficient boiler, loft insulation, solar panels on the Property’s roof, a home battery or an electric vehicle charging point) and, if deemed suitable, undertake any such installations.

24.2 The Landlord, or any person acting on behalf of the Landlord, shall take reasonable steps to ensure that the Tenant’s right to quiet enjoyment of the Property is not unduly interrupted by, and make good any damage caused by, the investigations or the undertaking of the installations referred to in clause [2.1].

24.3 Subject to the Landlord’s compliance with clauses [2.1] and [2.2], the Tenant shall use its reasonable endeavours to cooperate with the Landlord to assist it with the investigations or the undertaking of the installations referred to in clause [2.1].

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