Scaling Property Linked Finance in Australia
For more than a decade, Australia has proven the power of Property Linked Finance (PLF) to deliver cost savings, resilience, and environmental benefits. Now, aligned with the Global Property Linked Finance Initiative (GPLFI), we are ready to scale PLF into housing and beyond, unlocking billions in private capital for a sustainable built environment.
What is Property Linked Finance (PLF)?
Property Linked Finance (PLF) enables long-term funding for environmental upgrades and building improvements. Unlike traditional finance, repayments are linked to the property rather than the owner, meaning obligations transfer if the property is sold. Payment terms can also align with the lifespan of the improvements, making upgrades more affordable and practical.
The Global Property Linked Finance Initiative (GPLFI)
The Global Property Linked Finance Initiative (GPLFI), led by the Green Finance Institute (GFI) and the Climate Bonds Initiative (CBI), works to unify and accelerate global Property Linked Finance (PLF) markets. Its mission is to establish a shared framework, foster local innovation, and mobilise scalable financial tools, transforming PLF into a globally recognised and investable asset class that drives a sustainable built environment.
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PLF Accelerator is proud to represent Australia on the GPLFI Advisory Board. Through this role, we connect Australia’s experience in Environmental Upgrade Finance with international principles and investor standards. This ensures our local market develops in line with global best practice while addressing national housing, energy, and policy priorities.
Understanding Property Linked Finance: A Global Asset Class
Global Impact
Australia is one of only two active Property-Linked Finance (PLF) markets in the world, referred to locally as Environmental Upgrade Finance (EUF), while in the U.S., it is known as Property Assessed Clean Energy (PACE). The UK, EU, and Southeast Asia are at different stages of developing their own PLF frameworks, using Australia's and the U.S.'s successes as models.
Local Benefits
Unlocks private capital to drive the energy transition without relying on government subsidies, easing fiscal pressure.
​Cuts costs - reducing utility expenses for businesses and improving cost-of-living outcomes for households.
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Enhances property resilience while reducing environmental impacts.
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Provides lenders with a secure, long-term investment aligned with ESG goals and financial disclosure requirements.
PLF in Australia – it’s Environmental Upgrade Finance
Australia has been at the forefront of Property Linked Finance for more than a decade. Since Environmental Upgrade Finance (EUF) was first introduced in Victoria in 2010, the model has now expanded across four states and over 75 councils have supported projects delivering more than $143 million in savings and strong environmental outcomes.
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This proven track record makes Australia one of the worlds leaders in PLF. Other markets have drawn on the Australian and US experience to inform their own development.
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EUF operates through a contract between property owners, lenders, and councils, with repayments attached to the property via council rates. This structure provides security and long-term benefits for all parties, while reflecting Australia’s local context.
With the fundamentals established and performance demonstrated, the next step is scaling. Research shows a $42.6 billion investment opportunity in residential upgrades and new housing, segments currently excluded from EUF. Building on Australia’s established framework, and aligned with the Global Property Linked Finance Initiative (GPLFI), this opportunity is ready to be unlocked.
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Investors & Financiers – A Prime Investment Opportunity
Property Linked Finance (PLF) combines secure, senior real estate-backed finance to fund better buildings - offering institutional investors and banks a scalable, low-risk asset aligned with long-term value, climate resilience, and Australia’s Sustainable Finance Roadmap.
Lower Risk Than Mortgages
Secured by a senior-ranking property charge, providing enhanced security.
Institutional-Scale Investment
A $250 billion market opportunity across six submarkets, with a national framework enabling secondary markets.
Tied to the Property
Ensuring stable, long-term returns, independent of ownership changes.
Aligned with Australia's Sustainable Finance Roadmap
A green-labeled, ESG-linked investment supporting net-zero commitments and mandatory financial disclosure laws, creating a scalable, compliant asset class.
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RACE for 2030: Scaling Australia's Leadership in PLF to 100,000 homes
The Property Linked Finance (PLF) for housing transformation project will explore how to scale Property Linked Finance (PLF) nationally, building on 15 years of experience in EUAs since its 2010 launch in Victoria. PLF can support affordable, energy-efficient upgrades for both existing and new homes - boosting performance without higher upfront costs and creating a stable, liquid market that can attract capital and accelerate Australia's housing transition.
Delivers clear governance, a practical rollout plan, and a strategy to grow PLF—showing how better systems, smart finance, and aligned rules can help build a national market for home upgrades.
Why participate?
This research project is the first step in a plan to help facilitate the upgrading of over 100,000 homes across Australia. The main goal is to create a standard way for different lenders to offer PLF across the country, making it easier for people to finance green home upgrades at scale.
Current Partners
PLF Accelerator
Get to Know Us
The PLF Accelerator is building the foundations for a national Property Linked Finance (PLF) market in Australia. We work with councils, lenders, governments, and industry to unlock private capital for better buildings - making our built environment more efficient, resilient, and affordable.
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PLFA also represents Australia on the Global Property Linked Finance Initiative (GPLFI) Advisory Board, led by the Green Finance Institute and the Climate Bonds Initiative. This ensures our local market aligns with global principles and investor expectations while responding to Australia’s housing, energy, and policy priorities.
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Our goal is to scale PLF into a transparent, competitive, and investor-ready market that attracts long-term private capital, without reliance on ongoing public subsidies.