Green leases and green lease provisions are optional in Japan. Such leases are not currently common in Japan, but they are increasing in number and are more widely seen in main cities such as Tokyo and Osaka.

The following is a summary of typical green lease provisions:

• Confirmation of collaboration on environmental considerations

  First, as a prerequisite for a green lease, the contracting parties might consider a provision to the effect that they will work together on environmental considerations regarding the property subject to the contract. Although such provision may not provide for specific measures, it has the effect of confirming that the contracting parties are willing or are committed towards collaborating to enter into a green lease.

• Setting targets such as reduction of energy consumption

  In addition to confirming cooperation, setting specific targets can have the effect of making the lease more effective from a “green” perspective. Not only is it possible to set targets at the time of contracting, but it is also possible to set them after the contract has been signed. Specific target items could include, for example: (1) consumption of electricity, gas and other energy sources; (2) greenhouse gas emissions; (3) water consumption; and (4) waste generation, treatment and recycling status.

• Sharing energy consumption data and other information

  A green lease may also include provisions for sharing energy consumption and other data in order to set targets and measure the effects during the term of the lease. The extent to which detailed data is shared may vary depending on the individual lease agreement, but one method is to start with a simple scope and then broaden the scope of shared items through discussion.