Climate clause

Landlord and Tenant Obligations to Provide Renewable Electricity

Briony's Clause

This is a low barrier to entry clause that delivers emissions reductions for landlords and tenants by ensuring that electricity supplied to a leasehold property is from renewable sources.

This is a climate clause

This clause brings climate considerations to your drafting. It is not yet net zero aligned. To align this clause with net zero, use our toolkit or join one of our events.

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Why use this?

Briony’s Clause is a fundamental part of any landlord and tenant’s strategy to reach net zero.

The clause

Additional definitions

100% Renewable Energy means an energy system where all the energy used is sourced from Renewable Energy Sources.

[Renewable Energy Certificate means a renewable energy certificate[or an equivalent certificate] for energy consumed within the Premises and generated from a recognised source of renewable energy for which such certificates are available.]

Renewable Energy Sources means naturally replenishing non-fossil sources of energy, including but not limited to hydropower and tidal power, hydrothermal power, aerothermal power and geothermal power, wind, and solar [which are in each case eligible for certification as Renewable Energy Certificates].

[Drafting note: ‘Renewable Energy Sources’ may be defined differently depending on the jurisdiction (State) that the asset is located in. Parties should understand what falls within the definition of Renewable Energy Sources in each relevant jurisdiction.]

 

Additional clauses 

[Drafting note: Capitalized terms relate to either a defined term in this clause or a defined term in the main agreement that this clause is designed to be inserted into.]

Landlord’s obligations

1. Electricity Supply 

1.1 Landlord shall procure electricity for the Premises [and the Common Areas of the Building] that is 100% Renewable Energy.

1.2 Landlord shall provide Tenant on demand with appropriate documentation to evidence the energy sources used to generate electricity for the Premises. [Landlord agrees that Tenant may provide such documentation from Landlord to Tenant’s consultants, lenders or prospective lenders, or other third parties having a reasonable need to know such information.]

Tenant’s obligations

2. Electricity Supply 

2.1 If Tenant procures any electricity for the Premises, it shall be 100% Renewable Energy.  

2.2 Tenant shall provide Landlord on demand with appropriate documentation to evidence the energy sources used to generate any electricity procured by Tenant. [Tenant agrees that Landlord may provide such documentation from Tenant to Landlord’s consultants, lenders or prospective lenders, purchasers or prospective purchasers, or other third parties having a reasonable need to know such information.]

 

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