Rental lease agreements are increasingly incorporating ‘green’ clauses as moves across Europe to promote sustainable buildings take hold, according to a new report from legal and financial services company CMS Derks Star Busmann.

The firm’s report, entitled Study on the Use of Green Lease Clauses in Europe, analyses the existing regulations and real estate market practices in 21 European countries to measure their environmental effect.

The study uncovers an increased use of ‘green’ clauses in lease agreements across Europe as new environmental legislation takes effect. CMS Derks partner Arnout Scholten comments: ‘Environmentally friendly and sustainable buildings are only starting to become the norm across Europe, in a push to reduce emissions and energy consumption in a region fully committed to the Kyoto Protocol. So ensuring buildings stay green during their entire lifetime is essential to future-proof investments’.

Even so, the study also notes that incentives for landlords to keep their buildings up-to-date in terms of energy efficiency are currently very limited. CMS experts call for authorities to look at expanding incentives for landlords and lessees alike.

The study also finds that there is currently little consensus on a Europe-wide standard for energy certification and notes strong differences between different countries and the environmental certification systems they adopt.