The government-backed Green Finance Institute has released a report lobbying for the UK to adopt property-linked finance as a means to drive investment into efficiency upgrades across residential and commercial property.
The PLF model enables property owners to fund up to 100% of energy efficiency upgrades upfront. Crucially, the finance is linked to the property, rather than the property owner. This means the payment obligation transfers to the new owner when it is sold.
The idea is based on the US Property Assessed Clean Energy model. In the US it has enabled the investment of more than $13bn (£10.28bn) of private capital in making homes and commercial buildings greener and more resilient, according to trade body PACENation.
The GFI report says developing and introducing PLF to the UK market in collaboration with the finance and retrofit industries has the potential to enable between £52bn and £70bn of private capital into upgrading 2.1m EPC D-rated and below owner-occupied homes.
As well as the government, the GFI also receives funding from the City Corporation of London and several charities focused on climate action, including Quadrature Climate Foundation, MCS Charitable Foundation and the Laudes Foundation.
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