Global Property Linked Finance Initiative
What is the Global Property Linked Finance Initiative?
The built environment accounts for 37% of global emissions, yet investment in building energy efficiency remains far below what's needed. In 2024, only $275 billion was invested—despite estimates that $34 trillion will be required between 2025 and 2050 to decarbonise the sector.
Property Linked Finance (PLF) offers a solution by enabling long-term funding for environmental upgrades to buildings. Unlike traditional finance, PLF links repayments to the property rather than the owner, allowing obligations to transfer upon sale and aligning payment terms with the lifespan of improvements.
However, existing PLF markets have developed in isolation over the past decade, leading to fragmentation and a lack of shared standards. The Global Property Linked Finance Initiative (GPLFI) addresses this by creating a unified framework for global PLF markets, offering technical support to develop PLF solutions, and providing financial tools to help early adopters scale solutions.
By combining a top-down strategy - establishing clear objectives, unified principles and development pathways, and building political support - with bottom-up action in local markets – including PLF accelerators and capital market vehicles that can support early implementation - and tailoring its approach to local contexts, the GPLFI helps reduce reliance on public funding while creating a new, attractive global asset class for investors.
$34 trillion
3 markets
$18.8 billion
Our resources
In Consultation: Property Linked Finance Principles
The PLF Principles set out a framework of recommended principles, and product features derived from those principles, enabling all market participants to clearly understand the characteristics of a PLF solution.
