Commercial Leases and Climate Change Regulations

Over the past decade, Scotland has implemented several pieces of legislation which together intend to improve the affect we, as a nation, have on the environment. These climate change regulations cover a wide-range of policies, many of which have a direct impact on those entering into a commercial lease. Whether you are a landlord or a tenant, you need to know what these regulations are, and what legal responsibilities they entail.

Climate Change Regulations

While there is now a whole host of environmental legislation, some of the most important climate change regulations with regards to commercial leases include the following:-

1. Climate Change (Scotland) Act 2009

Targets have been set in Scotland which state harmful emissions must be cut by 42% by 2020. Although this may seem ambitious, it is hoped the policies introduced in the Climate Change (Scotland) Act 2009 will help achieve this aim.

One such policy relates to the energy performance certificate. Since January 2009, landlords wishing to lease their commercial property are required to carry out an energy performance assessment. Any improvements that are suggested should be subsequently performed, thereby improving the building’s overall efficiency.

Tenants should remain aware of this obligation before signing a commercial lease, as it will be financially beneficial to occupy a premises which is energy efficient. Furthermore, if you sign the contract before improvements have been made, your landlord may make you responsible for carrying out the necessary repairs and alterations.

2. Building Regulations

New building regulations introduced in 2010 will, the government hopes, reduce carbon emissions from new buildings by 30%. This will be particularly relevant to any landlord intending to build a new premises, or extend an existing building.

3. CRC Energy Efficiency

Since April 2010, the Carbon Reduction Commitment Energy Efficiency scheme has been in force throughout the UK. The trading scheme requires commercial and public sector organisations to purchase allowances based on their carbon emissions. It does, however, only apply to certain qualifying businesses (such as supermarkets, banks, and hotel chains).

Therefore it is ordinarily the tenants who are liable to buy these allowances. This must be made clear in the terms of the lease, or a landlord could end up paying on behalf of his tenant.

Legal Advice in Edinburgh

If you would like any more information on commercial leases and climate change regulations, contact us at McKay Norwell today. Our commercial property lawyers are specialists in this area of the law, meaning we have the legal expertise and professional experience to help you, no matter what your query.

Simply call us for a free assessment immediately on 0131 222 8000 or complete the enquiry form on the right of this page and we will be delighted to help you.