Climate Contract Playbook Edition 3
161
17.
NGO Interests
17.1 The Promoter shall engage with all relevant NGOs to encourage direct feedback from them to the extent reasonably required to achieve the Objectives or facilitate the Development, in order to reduce the number of objections at planning.
18.
Net Zero Price Adjustment
18.1 If after [ NUMBER ] months of promotion the Promoter is unable to find a buyer and the reason has been notified and evidenced as the Net Zero Objectives being too onerous, the Owner will, acting in good faith, consider offers to buy the Development Land at the Net Zero Adjusted Land Price. [DN the drafting tries to set a higher disposal threshold to enable the higher price to be used to offset the environmental losses from not hitting the Net Zero Objectives] 18.2 On sale of the Development Land at the Net Zero Adjusted Land Price the parties agree that the cash difference between the Net Zero Adjusted Land Price and the Minimum Land Price and Market Value (the “Carbon Premium”) shall be used for any of the following purposes: (a) to progress Carbon Insetting or Carbon Offsetting relating to the Development; (b) to promote Carbon Capture in the UK by using the Carbon Premium to plant trees or preserve peat bogs; and/or (c) to any similar or analogous activity that would offset or balance the resulting Development’s carbon footprint.
19.
Net Zero Bonus
19.1 The Owner shall pay the Promoter the Net Zero Bonus immediately following completion of each Sale that meets the Net Zero Objectives in full.
20.
Net Zero Overage
20.1 To ensure that the Objectives are met and delivered, the Owner shall ensure the Satisfactory Planning Permission is not amended by subsequent owners or developers in a way that would erode the Net Zero Objectives. 20.2 The Owner and the Promoter agree that they will not accept a financial offer for the Development Land if such offer excludes the Net Zero Overage. 20.3 The Owner shall not exchange contracts in relation to any Sale without incorporating the Net Zero Overage either as covenant in the Transfer or as a separate overage deed.
21.
Transfer The transfer of the Development Land to a Buyer shall include: (a) a positive covenant to pay the Net Zero Overage [DN: assumes deed of covenant wording included elsewhere]; and (b) a Conservation Covenant over the Conservation Land in favour of [ NGO or Community Company].
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