Melbourne's Buildings; Full of Life with Zero Carbon

Zero Carbon Lease for Commercial Office Space

The City of Melbourne has developed the Zero Carbon Lease - User Guide to help building owners and tenants work together to improve building performance and achieve carbon neutrality. These lease clauses provide a structured framework for setting clear expectations and fostering ongoing collaboration between landlords and tenants, driving progress toward net zero emissions in commercial buildings.

This is not a challenge unique to Melbourne. Many cities across Australia face the same pressing need: the gap between the growing number of tenants with net zero targets and the limited availability of high-performing, zero-carbon-ready buildings. In Melbourne, only a handful of such buildings exist in the CBD, while 67% of large occupiers (over 5,000 sqm), according to JLL research, have net zero carbon targets. These tenants are increasingly prioritising sustainability-focused leasing decisions, particularly following the introduction of regulatory requirements for climate-related financial reporting.

As leases approach expiry, many tenants will be actively seeking to occupy high-performing, sustainable buildings. Lease expirations represent a pivotal opportunity to align tenancy decisions with net zero ambitions. The Zero Carbon Lease clauses are designed to bridge this gap, providing a shared framework for landlords and tenants to collaborate and make measurable progress on decarbonisation.

The City of Melbourne is inviting organisations to pilot the Zero Carbon Lease template clauses. By joining this initiative, you can showcase leadership in sustainability, contribute to shaping best practices, and help create case studies to inspire broader adoption. If your organisation is interested in participating or providing feedback, please get in touch at zerocarbonbuildings@melbourne.vic.gov.au.

We extend our special thanks to MinterEllison and Pollination Law for their invaluable support in developing the lease clauses.

For more details, please visit: Retrofit Melbourne | City of Melbourne