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ARTICLE · 20 AUGUST 2025

Green Leases: The Next Big Clause

Herrington Carmichael LLP
Herrington Carmichael LLP
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Herrington Carmichael LLP

Herrington Carmichael LLP

The origins of the practice can be traced back over 180 years in Wokingham and 150 in Aldershot. It...

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A green lease is any lease that incorporates provisions aimed at improving the environmental performance of a building.

United KingdomReal Estate and Construction
Rachel Duncan
Rachel Duncan
Charlotte Harris
Charlotte Harris
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What is a green lease?

A green lease is any lease that incorporates provisions aimed at improving the environmental performance of a building. These leases typically include clauses that allocate responsibilities between a landlord and tenant to support sustainability goals such as reducing energy consumption, improving waste management, and enhancing overall building efficiency.

Green leases are becoming more prevalent in commercial property as landlords and tenants seek to align with the UK Government's commitment to achieving net zero carbon emissions by 2050.

Why do they matter?

Green leases are not currently a legal requirement, but they are gaining traction. One of the key drivers is the tightening of the Minimum Energy Efficiency Standards (MEES) which currently require a minimum EPC rating of E for commercial properties to be let. From April 2023, this requirement applied to both new and existing leases.

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