60
HKGBC Green Tenancy Driver for Office Buildings
CH 6
SPLIT INCENTIVE CONSENT
Method 2:
“The Green Improvement Charge”
“The Green Improvement Charge” was
developed in Australia and is an example
provided by The Green Lease Handbook.
As suggested by Wheeler, Pratt & Cox
(2012), the Green Improvement Charge
is an additional charge for Tenant on top
of their existing lease that allows them to
contribute to the retrofit and investment
of more energy efficient devices. The
Landlord and Tenant will both share
the cost of the improvements through
the Green Improvement Charge thus
eliminating potential Split Incentives. The
Tenant will then be paid back through
savings in energy as a result of installing
more energy efficient devices.
This is similar to the previous method, but
instead relies on the tenancy policies to
implement a green improvements charge.
To illustrate this idea, a case with five-year
payback is shown below (Figure 6.4).
Figure 6.4. Green Improvement Charge
