Energy efficiency in leased buildings

For the last three years an AGS team has been assisting the Australian Greenhouse Office to develop innovative Green Lease Schedules for inclusion in Commonwealth building leases.

These schedules, which are additional to the standard government building lease contract clauses, are aimed at increasing energy efficiency by creating mutual obligations for tenants and building owners.

Josephine Ziino, leader of the AGS team, played a prime role in creating this unique, cutting-edge suite of documents comprising the lease schedules, comprehensive guidance notes and a supporting handbook.

These Green Lease Schedules are an important component of the Australian Government’s Minimum Energy Performance Standards, which form part of the 2006 Energy Efficiency In Government Operations Policy. They emphasise mutual contractual lease obligations to achieve energy efficiency targets in Commonwealth-leased buildings, and focus on remedial action rather than litigation to achieve outcomes. They provide greater consistency across government, with flexibility to include other sustainability outcomes such as water conservation and waste reduction.

Australian Government agencies occupy almost 2.6 million square metres of office accommodation around Australia, and government leadership in this area is expected to encourage market acceptance of this approach. Increased energy efficiency in buildings will reduce Australia’s total energy consumption and greenhouse gas emissions. Energy management will also lead to significant savings and improvements in the cost-effectiveness of government operations.

Australia is gaining recognition as a world leader in this area, with this energy policy and associated lease documents generating significant overseas interest.