A new U.K. green finance vehicle could unlock up to £70 billion ($90.3 billion) of private investment into energy efficiency upgrades in the U.K. residential market alone, according to its would-be creators.
The mechanism, called Property Linked Finance (PLF), would be set up by The Green Finance Institute (GFI), in partnership with Lloyds Banking Group and NatWest Group. It would be similar in structure to the Property Assessed Clean Energy (PACE) vehicle, which has enabled the investment of more than (€14.9 billion ($16 billion) of capital into refitting more than 371,000 homes and commercial buildings in the United States to make them greener and more resilient.
The GFI claims PLF will enable access to affordable and long-term funding for environmental improvements to buildings by linking the finance agreement to a property, rather than an owner. As a result, loan repayments can transfer to a new owner when a building is sold. Property owners would only pay for e
