Climate Contract Playbook Edition 3
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The key stakeholders that you think need to be engaged to deliver this Impact:
1. 2. 3. 4. 5. 6.
Royal Institute of Chartered Surveyors
Land agents
Stakeholders
Land Promoters & Developers Federation Local planning policy decision makers Precedent and know how providers
Private practice firms and their professional support lawyers
The proposed amendments will mean that a landowner and their promoter/ developer will have to discuss net zero and environmental implications of a development. This puts environmental and climate change issues front and centre of the negotiation and future land use. A Zero Carbon by Design approach is consistent with UK policy and targets on Net Zero and therefore less likely to be challenged by environmental groups. The drafting is deliberately “Dark Green” in nature and acknowledged as not representing the market norm today. It is likely that parts of the drafting will be more acceptable than others and as usual is for the individual lawyer and their client to consider what is appropriate in any particular case. The promoter’s fee has a bonus mechanism whereby the promoter gets paid more if they hit the financial and net zero obligations. This creates incentives but also acknowledges the challenges. The community and net zero aspects can be re-prioritised and given different emphasis according to the landowner’s and site requirements. The Net Zero Overage clause operates to use economic levers to prevent erosion of the net zero obligations by a subsequent owner of the land. As usual tax advice should be taken on the creation and entry into an overage. Capitalised Terms not defined are assumed to be defined in a wider land promotion precedent for example “Determining Authority”, “Affordable Homes” etc. It is acknowledged that the drafting requires refinement and could be difficult to interpret without the rest of the agreement. The restriction wording would need to be reviewed to ensure it meets the Land Registry Practice Guide 19. The drafting favours the landowner and assumes they will want to retain complete control of the environmental outcomes for the site. A promoter is likely to want to be more specific about what is and is not acceptable to the owner. The Net Zero Overage is deliberately aggressive to discourage erosion of the original Net Zero Objectives.
Application
Notes for users
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