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?

In Brazil, green leases are not yet commonly used, although certain types of green clauses have already been incorporated into industrial or commercial lease agreements. However, instead of imposing sustainable practices and providing benefits for sustainable behaviors, the clauses deal mainly with the environmental responsibility of landlords. In residential leases, green clauses are still rare.

Nonetheless, the trend is to include sustainable practices in tenders promoted by governmental authorities and government-owned companies. In entering into contracts with the private sector, public authorities may require, among other things, the adoption of parameters of power efficiency and reduction of water consumption from bidders.

However, as there is not yet any mandatory requirement to include clauses regarding the environmental sustainability of the building in leases, we do not see this scenario changing in the near future.