Global Property Linked Finance Initiative launched to create new global asset class unlocking trillions of built environment decarbonisation and resilience funding

New global market initiative targets the $34 trillion global built environment investment decarbonisation and resilience gap

The Green Finance Institute and the Climate Bonds Initiative launch Global Property Linked Finance Initiative, a new effort to harmonise and scale PLF markets globally.

London and New York, 22nd September 2025: The Green Finance Institute (GFI) and the Climate Bonds Initiative (Climate Bonds) have today announced the launch of the Global Property Linked Finance Initiative (GPLFI) during Climate Week New York City. This landmark initiative aims to scale Property Linked Finance (PLF) into a globally recognised asset class capable of unlocking billions in private capital for net-zero and climate-resilient buildings.

PLF is a proven, innovative, financing mechanism that links repayments to the property rather than the owner, enabling long-term, affordable finance for building upgrades and overcoming the barrier of prohibitive upfront investment and long payback periods. Already proven in the United States, where over $18 billion has been mobilised through Property Assessed Clean Energy (PACE) programmes, PLF offers a secure, low-risk investment opportunity for capital markets while overcoming key barriers to retrofit and resilience at scale. PLF is already an active market in Canada and Australia, with emerging pilots in the UK and Spain. 

Despite this progress, existing PLF markets have developed in isolation over the past decade, leading to fragmentation and a lack of shared standards. The GPLFI seeks to unify the global PLF markets and accelerate deployment timelines. The GPLFI will provide technical support to develop PLF solutions and provide the financial tools to help early adopters scale solutions.

The built environment is responsible for 37% of global carbon emissions and 34% of energy demand, yet current financing models are failing to meet the scale and urgency of investment required. To meet net-zero and resilience goals, $34 trillion must be invested into global building stock by 2050. Current financing models are insufficient, and traditional finance has been slow to address the complexity and scale of energy-efficiency and resilience investments. According to the IEA, in 2023, annual investment in building energy efficiency was just $244 billion – a decline of 4.43% from the previous year. 

Emma Harvey-Smith, Managing Director at the Green Finance Institute and Co-Chair of the GPLFI, said:

“Property Linked Finance has already demonstrated its ability to unlock billions in sustainable investment in several different markets. Through the Global Property Linked Finance Initiative, we are working with partners across the world to lay the foundations for a new global asset class, creating the frameworks, technical assistance and finance vehicles needed to unify fragmented markets and accelerate capital flows into net-zero and climate-resilient buildings everywhere.”

Ina Hoxha, Chief Investment Officer & Deputy CEO at Climate Bonds Initiative said: 

"Property Linked Finance has the potential to transform how we fund the decarbonisation and resilience of the building sector globally. By harmonising standards and scaling this proven mechanism internationally, the Global Property Linked Finance Initiative will unlock much-needed capital flows, accelerate market development, and provide investors with a new, credible asset class to support the net-zero transition."

The initiative’s first major output, the PLF Principles, is released today in beta form for consultation. These principles define the core characteristics of PLF solutions across jurisdictions, promoting transparency, integrity and best practice. The consultation will run through October, culminating in the formal launch of the Principles during COP30 in November 2025.

GPLFI, launched at an event hosted in New York today, will be delivered in three phases:

1. PLF Principles and Pathways: Through a global advisory group, the GPLFI is developing the tools for countries to understand PLF and demonstrate practical pathways to launch markets.
2. PLF Political Momentum: Building ministerial-level support to align national markets with PLF frameworks and commit to developing national PLF markets at COP31.
3. PLF Accelerator and Capital Markets Vehicles: Providing tailored technical assistance and capital mobilisation tools to scale PLF in both mature and nascent markets.

The UK is taking steps to develop its own market, with a PLF blueprint designed and a pilot is being pursued. The GFI has been pioneering PLF markets in the UK, Spain and beyond, including the publication of the 2024 “greenprint" report for UK PLF, developed in partnership with Natwest and Lloyds, which outlined how PLF could unlock £52–70 billion in private investment to retrofit Britain’s inefficient housing stock. 

In Spain, an emerging model is the PACE Canon, a tailored adaptation of PLF being developed by GFI España. Leveraging a dormant legal framework rooted in Roman law, this mechanism introduces a property-linked ecological annuity  to finance energy efficiency upgrades. Structured as a permanent benefit rather than a loan, with obligations tied to the property and transferred with ownership, the PACE Canon offers a long term, non acelerable, off-balance-sheet, scalable financing solution, providing a replicable model for wider EU and Latin American markets.

The GPLFI is co-chaired by GFI and Climate Bonds Initative, with support from advisory group members Amalgamated Bank, C-PACE Alliance, C40, Energy Efficiency Hub, Global ABC, IFC, IIGCC, Lloyds Banking Group, Nuveen Green Capital, PLF Accelerator Australia, RICS and World GBC,  a growing coalition of financial institutions, governments, and industry leaders. 

ENDS

Media contacts: SEC Newgate: Tim Le Couilliard (+44 7913 698298), Alice Cho (+44 7525 934020)

GreenFinanceInstitute@secnewgate.co.uk

About Green Finance Institute

Established in 2019, the Green Finance Institute (GFI) is at the forefront of shaping how finance can be used to facilitate real economy transition, by creating the enabling environments and financial solutions needed to accelerate the transition to a net-zero and nature positive economy. 

The GFI is uniquely positioned to bridge the gap between committed capital and impactful solutions, delivering positive outcomes for climate and nature by developing interventions that will redeploy capital at the pace and scale that the science demands. By working with governments, and partnering with financial institutions, corporates, NGOs, policymakers, academics and civil society experts, the GFI creates and scales innovative solutions that deliver practical outcomes for communities and economies.

About the Climate Bonds Initiative: Climate Bonds is the leading international non-governmental organisation mobilising global capital for climate action. We drive the growth of the green and sustainable debt market through science-aligned frameworks including our taxonomies and standards, our Certification, our data and insights, and our provision of expert policy and technical advice. More information on our website here.