UNLOCKING GREEN FINANCING: INSIGHTS INTO AWARENESS AND CHALLENGES

Abstract

The South African construction industry faces moderate awareness and substantial barriers in adopting green financing, limiting its potential to advance sustainable building practices. This study investigates both the level of awareness and the key constraints affecting adoption among construction professionals. Using a quantitative, cross-sectional design, data were collected from 44 industry practitioners via a structured questionnaire and analyzed with descriptive statistics in SPSS. Findings indicate that professionals are most familiar with conventional instruments, such as green investment funds, green loans, and eco-friendly infrastructure financing, whereas knowledge of innovative mechanisms, including green venture capital, sustainability-linked loans, and carbon markets, remains limited. Key barriers include insufficient knowledge, inadequate sustainability training, high perceived costs of green materials, and low organizational commitment. A conceptual framework was developed to link awareness, organizational capacity, financial mechanisms, and structural enablers to adoption outcomes, integrating insights from Diffusion of Innovation and the Theory of Planned Behavior. This framework highlights the interdependence of knowledge, institutional support, and market readiness in facilitating green finance adoption and provides a systematic approach for understanding adoption dynamics in developing country contexts. The study contributes to knowledge by empirically assessing awareness and identifying barriers, offering practical guidance for policymakers, financial institutions, and construction firms. The study concludes that targeted interventions, such as professional training, awareness campaigns, tailored financial products, and supportive regulatory frameworks, can enhance adoption, enable sustainable infrastructure development and advance broader environmental, social, and economic objectives in South Africa.