Australia

The Australian green lease is a self contained generic document forming a legally enforceable management framework1.  The package includes five elements:

• Agreed energy efficiency / Australian Building Greenhouse (ABGR) Rating
• Separate digital metering
• Energy management plan
• Building management committee
• Dispute resolution

The Australian Green Lease has been criticised for being dependent on building technology, and not flexible enough in its approach to building management2.  Accommodating separate digital metering could be problematic for older multi-tenanted buildings which would need significant investment to rationalise electric wiring.  It may also be an issue where the metered gas supply is used to provide unmetered heat and hot water to different occupants.  Another issue is the requirement for a minimum ABGR rating – this is a responsibility of the landlord/owner, but can be difficult to achieve when the building is occupied by a 24/7 tenant.

Since there is little scope to vary the lease to meet specific requirements, eight versions have been written to encompass the major possibilities:

• Schedule A1 (gross lease – single occupant)
• Schedule A2 (net lease – single occupant)
• Schedule B1 (gross lease – dominant occupant)
• Schedule B2 (net lease – dominant occupant)
• Schedule C1 (gross lease – subsidiary occupant)
• Schedule C2 (net lease – subsidiary occupant)
• Schedule D1 (gross lease – voluntary)
• Schedule D2 (net lease – voluntary)

The Australian Government has been a major driver for the Australian Green Lease1, although other clients include Superfunds, Telco Companies, Banks and Property Trusts.  Detailed information has been made available on two of the buildings (60L and The Bond) which have been occupied under this scheme3, 4.

There are a variety of sources for information1, 5, 6, but the best is considered to be the Australian Government’s Energy Efficiency in Government Operations (EEGO) website7 from which copies of the leases variations can be downloaded.  This website also holds guidance notes on the Green leases scheme.  In addition to this, a presentation given by Lloyd Woodford on the Australian Green Lease mechanism can be downloaded from the London Climate Change Agency website1.

1. Woodford, L. Energy Efficiency in Government Operations (EEGO) Policy: Green Lease Schedule.  2007.
   
2. Wilcher, R. and t. D'Agostino. Green Leases: the past, the present, the future.  2006.
   
3. Welcome to 60L. 
   
4. Brooks, S.M. Green Leasing in RealLeasing Conference. 2007.
   
5. Green Lease Guide for Commercial Office Tenants. 2006, Investa Property Group.
   
6. Green Lease Schedule. 2006, Investa Property Group.
   
7. Energy Efficiency in Government Operations (EEGO).