STRATEGIES FOR THE ADOPTION OF GREEN FINANCING IN THE CONSTRUCTION INDUSTRY

Abstract

Green financing is increasingly recognised as a critical mechanism for advancing sustainable infrastructure development; however, its adoption within South Africa’s construction sector remains limited. Despite evidence of its benefits, there is insufficient empirical understanding of the strategies that enable effective adoption. This study examines the strategies that facilitate green financing adoption in the South African construction industry. A quantitative research design was employed, with data collected in 2023 from 44 construction professionals using a structured questionnaire and analyzed through descriptive statistics in SPSS. The findings identify key strategic dimensions influencing adoption, including awareness and capacity-building initiatives, financial product innovation, government incentives and policy alignment, and collaborative and structural enablers. These strategies were integrated into a theory-informed conceptual framework grounded in innovation adoption and institutional perspectives. The results demonstrate that green financing adoption is shaped by the interaction between organizational readiness, financial and regulatory support, and collaborative institutional structures. The study provides evidence-based recommendations for all stakeholders to implement these strategies.