Green Leases
Are green leases or green lease provisions mandatory or optional? If mandatory, to whom do they apply? If optional, is there significant take up?

Green lease provisions remain optional in the Netherlands. Under the widely used industry-standard Lease Agreement and General Lease Conditions regarding office space, a specific sustainability/green lease provision has been adopted in line with the energy label obligation of energy label C. The industry-standard Lease Agreement and General Lease Conditions regarding commercial space also contain a specific sustainability/green lease provision, according to which parties underline the importance of sustainability and, thus, will support one another in reaching their formulated sustainability targets.

The Dutch green lease provisions were set up by the former agency Agentschap NL and the Sustainable Housing Platform (Platform Duurzame Huisvesting). This platform is an alliance between sector, knowledge and umbrella organizations that play an important role in (i) housing in existing nonresidential premises, (ii) maintenance and management of buildings and (iii) investment in building facilities. The platform is currently the active player in the promotion of green leases and removal of "split incentives." These split incentives still form a barrier for building owners to take sustainable or energy-saving measures. In a traditional contract, the landlord is required to pay the investment costs, even when the lower energy bill will ultimately benefit the tenant. Such a setup may cause a landlord not to take far-reaching measures. A green lease, on the other hand, enables parties to reach an agreement on a fair distribution of the costs, as a result of which both tenant and landlord can profit from the sustainable and energy-saving measures that are undertaken.