Headnote
Purpose. Development and implementation of modern strategies for the development of the construction industry of Ukraine, which will ensure the use of sustainable materials, methods and business models to reduce emissions into the environment, increase energy efficiency, overcome public indifference to environmental protection and promote compliance with the principles of ecological construction.
Methodology. The authors used a set of general scientific and special research methods, in particular methods of life cycle assessment of materials (LCA), synthesis, comparison of sustainable development practices approved in Europe with those common in Ukraine.
Findings. It is proven that basic construction materials, such as steel, concrete, cement, brick and glass, require a lot of energy for their production and extraction, which leads to the formation of large volumes of waste, and recycling allows their reuse in the production of new materials. Innovative technologies in construction, such as 3D technologies, modular construction, biomass, heat recovery and circular models, etc., help optimize construction processes and reduce costs. Decarbonization of construction materials is a critical necessity for humanity, and the implementation of low-CO, emission technologies in the cement industry is important for reducing environmental impact. Sustainable development of the construction industry of Ukraine can be achieved through close cooperation between the government, industry and scientific institutions to stimulate the implementation of sustainable strategies through subsidies, grants and tax breaks. This will create demand for environmentally friendly products and contribute to the transition to sustainable construction.
Originality. The authors systematized the use of various construction materials (concrete, steel, wood, glass) at an ecological level in the context of sustainable development in the construction industry. Different strategies are proposed for each category of construction materials that reduce their cost, optimize resource use, reuse and recycling. It isshown that potential solutions should be based on such elements as sustainable circular business models to reduce the environmental burden on the environment; ecological construction methods; more environmentally friendly materials.
Practical value. The results of this work can be used in the creation of post-war reconstruction programs for Ukraine, various state policy programs, as well as the development of public-private partnerships.
Keywords: construction industry, sustainable development, digital transformation, circular economy, recycling, decarbonization
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The manuscript was submitted 18.02.25.
Introduction. The construction industry stands as one of the foremost global consumers of resources and a significant source of pollution. This sector accounts for over 50 % of all extracted natural resources worldwide, a third of total global waste, and nearly 40 % of global carbon dioxide emissions. Utilizing primary building materials, including steel, concrete, cement, brick, and glass, among others, presents numerous challenges. The production of these materials is energy-intensive, necessitates the extensive extraction of finite natural resources, and often results in the generation of tons of waste.
Despite modest advancements, the building sector lags behind net-zero carbon and climate resilience targets for 2050, with emissions increasing by 5 % since 2015, falling short of the 28 % reduction needed by 2030 to align with the Paris Agreement. In 2024, there was increased adoption of renewable energy and electrification, alongside a rise in green building certifications (20 % of new commercial buildings in OECD countries in 2023). Circular construction practices are also gaining traction, with recycled materials constituting 18 % of construction inputs in Europe. However, substantial challenges persist. Embodied carbon (18 % of buildingrelated CO, emissions), slow updates to building codes (only 3 globally in 2024), inadequate policies and decarbonization plans in NDCs, and insufficient investment in energy efficiency (US$1.1 trillion deficit) and green financing hinder progress [1].
The construction sector in Ukraine is characterized by low CO, emission efficiency, high material intensity, and reliance on imported building materials. Published statistics on waste generation in the industry are likely significantly underestimated. Only a small fraction of construction waste is recycled, with the majority being landfilled, and a portion mixed with municipal solid waste. According to the report "Circular Economy for Industrial Development in Ukraine: Situation Analysis" [2], in 2022, approximately 60 % of energy resources consumed by the construction industry came from oil and natural gas. Nuclear energy was the second-largest source (around 24 %), followed by coal and peat (10 %). Regarding raw material use, the application of non-metallic minerals [3], particularly concrete, cement, sand, and asphalt (92 % of total material use in 2022), domi nates. The use of biomass is almost negligible (around 2 %), indicating a significant potential for developing the application of alternative local building materials, such as wood.
These challenges underscore the urgency of transitioning to more sustainable alternative materials to address environmental impact, conserve resources, and meet contemporary standards of responsible construction - that is, more sustainable practices that consider environmental, economic, and social aspects.
Literature review. Numerous works by both domestic and international scientists and practitioners have been dedicated to the study of the state and prospects of sustainable development in the construction industry of Ukraine. Domestic researchers, such as O. Romanenko [4], O. Palamarchuk [5], and A. Belograd [6], have focused in their works on the harmful impact of the construction sector on the environment, the study of foreign experience in nature protection, the use of ecological materials for construction, and more.
In the context of international research, it is worth highlighting the works by authors such as Andreas Secher and his colleagues, who investigated the link between declarations of construction products and sustainable development goals [7]. Their research emphasizes the need to implement environmental standards that reduce CO, emissions in the construction industry and contribute to the achievement of global sustainable development goals. Decarbonization of the construction industry is also an important topic being researched. Karen Scrivener, in her strategic roadmap for decarbonizing construction materials [8], anticipates the need for the implementation of carbon capture and storage technologies, as well as the use of alternative materials such as fly ash and slag.
Thus, the analysis of contemporary publications demonstrates active attention to the issues of sustainable development in the construction industry, particularly in the aspects of material ecology, efficient resource management, and innovative approaches. This indicates the global importance of the topic for preserving the environment and ensuring the sustainability of the construction industry.
Results. The construction industry bears enormous responsibility for supporting sustainable development. Manufacturers of building materials and products have a direct impact on 8 of the 17 Sustainable Development Goals (Fig. 1).
At the current stage of development, Ukraine demonstrates progress in the harmonization of national legislation in the construction sector with European directives. Even before the full-scale invasion, significant steps were taken in the field of waste management, directly impacting the construction industry. The adoption of the "National Waste Management Strategy until 2030" (2017) laid the strategic vision for reducing waste volumes, promoting their reuse, and ensuring safe disposal. In turn, the "National Waste Management Plan" (2019) specified the ways to implement this strategy, defining clear measures and responsible executors, which was intended to promote more responsible handling of construction waste.
A significant step towards European integration was the approval in 2021 of over 500 national standards that were harmonized with the European Union's standards for construction materials and technologies. Among the key changes, it is worth noting the ban on the use of asbestos in new buildings, which aligns with European health and environmental regulations. Furthermore, new energy efficiency standards for buildings were introduced, aimed at reducing energy consumption and greenhouse gas emissions, which is an important component of European climate policy [2].
Further confirmation of Ukraine's commitment to sustainable development in the construction sector was the adoption in 2023 of the Law of Ukraine "On the Provision of Construction Products on the Market". This law not only regulates the circulation of construction materials but also emphasizes the sustainable use of resources, encouraging manufacturers to implement environmentally friendly technologies and materials with a low environmental impact throughout the entire life cycle of construction products. The law also contributes to increased transparency and accountability in the construction materials market, which is an important element of European practice.
These specific steps demonstrate Ukraine's consistent work on integrating into the European economic and legal space in the field of construction, aimed at improving construction quality, energy efficiency, and environmental safety. However, a more comprehensive strategy is needed for a complete transition to sustainable development and a circular economy in construction. Existing laws are often recommendatory, and the mechanisms for monitoring their implementation are insufficiently effective. The problem of hazardous waste disposal, such as asbestos, which is still present in many old buildings, is particularly acute. To promote the adoption of best practices in sustainable development by construction organizations, including the reduction of greenhouse gas emissions and the minimization of environmental impact, there is an urgent need to develop detailed national standards for the sustainable development of the construction industry.
The active reuse of building materials such as brick, metal, wood, as well as the selection of sustainable alternatives, for example, bamboo, fast-growing wood species from certified forestry farms, or renewable insulation materials (cellulose, hemp fiber), leads to a significant reduction in the demand for the extraction of primary natural resources. This, in turn, directly impacts the reduction of deforestation, which is critical for the conservation of biodiversity and the absorption of carbon dioxide, and also reduces the intensity of mining, which is often associated with significant environmental damage and energy consumption. To achieve this goal, architects, designers, builders, subcontractors, suppliers, technological service providers, and company stakeholders must unite in new ways of addressing sustainable development challenges. Potential solutions should be based on the following elements: sustainable business models, sustainable (environmental) construction methods, and sustainable (more ecological) materials [9].
Sustainable (resilient, ecological) materials. Within the context of sustainable development in the construction industry, primary attention must be directed towards enhancing the efficiency of material utilization. This is achieved through concerted efforts aimed at promoting the application of environmentally sound and recycled materials, minimizing waste generation, and implementing efficient building materials.
Ecological building materials are distinguished by unique characteristics rooted in their life cycle. These characteristics include environmental friendliness, low maintenance costs, energy efficiency, local sourcing, biodegradability, and the promotion of water resource conservation. Additionally, these materials may incorporate recycled components, ensure optimal performance, and consume minimal energy expenditure. Among contemporary examples of sustainable materials that have found widespread application in the construction industry, one can highlight advanced concrete, organic admixtures, recycled and smart glass, treated wood, and building materials based on plastic waste. The implementation of such materials enables a significant reduction in the industry's negative impact on the environment [10, 11].
Innovations in environmentally safe concrete and building materials, particularly with the active use of recycled plastics, open up significant prospects for substantially enhancing the durability and operational efficiency of construction projects, while simultaneously strengthening their overall environmental sustainability. For example, in the development of environmentally safe concrete, alternative cements based on fly ash, blast furnace slag, or metakaolin are increasingly being used. These materials not only reduce the amount of necessary clinker - the main component of traditional cement, the production of which is energy-intensive and accompanied by significant CO, emissions - but can also improve the strength and resistance of concrete to aggressive environments. Research indicates that the use of such additives can reduce carbon emissions in concrete production by 20-50 %.
The use of recycled plastic as an aggregate or reinforcing element in concrete and other building materials is of particular interest. The addition of shredded plastic can improve properties such as crack resistance, water impermeability, and sound insulation. Furthermore, this addresses the problem of plastic waste disposal, preventing it from ending up in landfills and polluting the environment. There are successful examples of using recycled plastic for the production of concrete blocks, paving stones, composite building panels, and even as a modifier for bitumen in road paving.
Such an approach not only directly contributes to the conservation of limited natural resources, including non-renewable ones, but also significantly reduces the energy consumption and carbon emissions that inevitably accompany the processes of extraction, transportation, and primary processing of raw materials for the production of new building materials. The implementation of these innovative solutions is a key element in the transition to a more circular and sustainable economy in the construction industry.
Based on the analysis of scientific works [12, 13], the authors have identified and systematized the advantages of using sustainable building materials, which is crucial for ensuring the sustainable development of the construction industry (Fig. 2).
The reuse and implementation of sustainable building materials are key aspects of environmentally sound construction. This allows the industry to make a substantial contribution to the sustainable development of the country, preserving and guaranteeing ecological resilience for future generations.
Sustainable methods. It is quite evident that the pursuit of environmentally friendly and recycled materials paves the way for ecologically sound construction methods, upholding the ethos of efficient resource utilization and environmental stewardship that characterizes truly sustainable construction.
For the attainment of sustainable development in construction, the responsible handling and disposal of construction waste are of paramount importance. Construction sites typically generate a substantial amount of waste, ranging from unused materials to demolition debris, which can exert a severe negative impact on the environment if not managed appropriately.
The war in Ukraine has resulted in the accumulation of hundreds of thousands of tons of construction debris, with the most significant volumes currently concentrated in the Kyiv, Zhytomyr, Sumy, Mykolaiv, Kherson, Chernihiv, Kharkiv, Donetsk, and Luhansk regions. This waste occupies both legal and illegal landfills, exceeding the quantity of household waste due to its substantial size and weight. Composed of numerous fractions, a significant portion of this debris is suitable for recycling and reuse in construction or industry. However, certain components contain toxic substances, posing a threat to air, soil, and groundwater.
Before the large-scale hostilities, waste recycling was not a high priority for the government, with 95 % of municipal solid waste ending up in landfills. The current substantial increase in waste volumes has brought the issue of national security to the forefront. This waste stream includes components such as concrete, bricks, facing tiles, ceramics, wood, glass, plastic, insulation materials, and asbestos-containing building materials.
The implementation of a comprehensive waste management plan can significantly diminish the volume of waste directed to landfills, thereby contributing to the conservation of natural resources and the reduction of greenhouse gas emissions. Effective waste management encompasses strategies such as the recycling or reuse of materials, the donation of unused supplies, and the selection of suppliers who accept surplus materials. It also includes the proper disposal of hazardous waste, which can pose significant risks to the environment and health if mishandled. Furthermore, efficient waste management can yield considerable cost savings, as expenses associated with waste disposal can be substantial, thereby helping to enhance profitability [12].
The war and its consequences present numerous challenges to Ukrainian society, including those related to the rapid construction of new housing and the reconstruction of damaged buildings within compressed timeframes. In the context of the movement towards joining the European Union, the recovery process must adhere to the principles of sustainable development. Ideally, the guiding principles for construction in Ukraine during the recovery process should be the fundamental approaches of the international community, in particular, the European Green Deal and the "Breakthrough Agenda" program [14], as well as the implemented practices of other countries.
The "Breakthrough Agenda" aims to make near-zero emission buildings the new normal by 2030, supported by 59 countries (over 80% of global GDP). It directs countries towards policy development and cooperation in six key action areas for decarbonization [14]:
1. Standards and Certification.
2. Demand Creation.
3. Finance and Investment.
5. Capacity and Skills.
6. Landscape Coordination.
The Chaillot Declaration [15] reinforced these commitments through energy codes and sustainable materials. To reduce emissions, countries are taking measures on mitigation and adaptation.
The USA, where the construction sector accounts for 13 % of national greenhouse gas emissions, is intensifying efforts through state and federal government cooperation, focusing on energy efficiency, electrification, and innovative design supported by significant federal funding [1]. South Africa, Rwanda, China, Mexico, Germany, France, Tunisia, and the United Kingdom are also implementing policies and initiatives for building decarbonization, including energy regulations, efficiency standards, energy audits, emission reduction plans, life cycle carbon integration, and financial incentives.
The construction and operation of buildings directly impact the environment. The sector accounts for up to 40 % of annual global CO, emissions, of which 28 % is attributed to construction and 11 % to materials [1].
The application of sustainable methods in the construction sector of Ukraine will lead to the achievement of sustainable development goals, particularly SDG 12 "Responsible Consumption and Production", the essence of which lies in such actions as:
- promoting the use of environmentally friendly and recycled materials;
- reducing waste generation and implementing efficient construction methods to minimize environmental impact;
- considering the entire life cycle of buildings, from construction to demolition, to reduce environmental impact.
Employing a life cycle assessment for buildings entails a thorough evaluation spanning all phases, from initial construction to final demolition. By holistically analyzing each stage, encompassing material sourcing through disposal, this methodology seeks to pinpoint avenues for decreasing ecological impact. This facilitates well-informed choices in selecting materials and construction techniques that address immediate requirements while also promoting sustained environmental impact mitigation, thereby bolstering the sector's resilience. Embracing these strategies signifies a dedication to accountable building practices that surpass immediate project completion, cultivating a more environmentally aware and enduring construction sector.
In response to the urgent need to reduce carbon dioxide emissions, the construction industry must increasingly adopt low-carbon methodologies, prioritizing energy-efficient building designs. These efforts are aimed at significantly reducing the industry's carbon footprint, thereby contributing to global climate change mitigation strategies. By applying innovative construction techniques, such as the use of sustainable materials, the integration of renewable energy sources, and the implementation of green building certifications like LEED and BREEAM, construction projects can minimize environmental impact while enhancing energy efficiency.
Furthermore, the necessity to combat the escalating effects of climate change has prompted a shift towards resilient infrastructure. Construction practices are evolving to build buildings and infrastructure capable of withstanding the adverse impacts of climate change, such as rising sea levels and intensified extreme weather events.
The implementation of robust design and engineering measures will ensure the durability and adaptability of structures, fostering the resilience of communities in the face of climate-related challenges. Through these strategies, the construction industry of Ukraine will not only implement SDG 13 "Climate Action" but also strengthen communities against the escalating impacts ofa changing climate [16].
The economic component of sustainable development focuses on achieving financial stability and profit - ability for companies through the implementation of production automation, resource optimization, and the application of progressive business models. The adoption of advanced technologies, including robotics, big data analysis, and the development of innovative management approaches, facilitates more efficient resource utilization, enhances product quality, and enables rapid adaptation to changing market conditions. The development of novel business models based on principles of collaboration, shared resource utilization, or environmentally responsible production creates additional market opportunities and strengthens the competitive positions of enterprises [17].
The application of innovative technologies in the construction industry is an indispensable prerequisite for sustainable development. Methods such as 3D printing, modular construction, the use of secondary materials, recycling, and the implementation of circular models will allow for a reduction in waste, increased energy efficiency, and lower costs. However, the realization of these approaches requires cooperation between the Ukrainian government, industrial and scientific institutions, as well as the creation of incentives in the form of subsidies, grants, and tax benefits.
In the context of the urgent need for the reconstruction of Ukraine after the devastation of war, modular construction is considered a promising approach for the rapid and high-quality erection of new housing. This method is characterized by many advantages, including reduced construction timeframes, minimization of construction waste, improved quality control, and enhanced operational resilience of structures. Thanks to the precision of factory processes and standardized pro - cedures, the creation of higher-quality structures with a reduced number of defects is ensured. The Ukrainian construction industry possesses the necessary production capacities and technologies to address the problem of mass restoration of damaged housing stock through the application of modular construction. Furthermore, there are already successful examples of the implemen - tation of construction projects using 3D printing technology in Ukraine, including a school in Lviv and a private house in Irpin.
Sustainable models. A sustainable business model constitutes a strategic blueprint outlining the pathways through which a company generates profit and creates value for consumers. It encompasses key operational elements, including the goods or services offered, their production and distribution methods, customer acquisition and retention strategies, and revenue generation mechanisms. Effective sustainable business models are oriented towards achieving a triple bottom line: economic prosperity, social responsibility, and environmental sustainability. In the context of the increasing competition of the contemporary market, the development and implementation of sustainable business models is becoming a prerequisite for maintaining competitiveness and ensuring the progressive development of companies.
Sustainable business models in the construction industry and low-carbon strategies can expedite numerous construction phases, reduce project costs, diminish negative environmental impacts, and enhance social responsibility to the community. Furthermore, a digital construction ecosystem can help provide developers and operators With a continuous flow of data and information.
Globally, the construction industry is a significant source of construction and demolition waste (CDW), with volumes reaching approximately one-third of all global waste (around 2 billion tons annually). Only a small fraction of these materials is currently recycled or reused, while the majority ends up in landfills or is incinerated. This linear approach to waste management leads to the depletion of natural resources and an increase in greenhouse gas emissions due to the production of new materials, landfill gas generation, and uncontrolled incineration.
The implementation of circular construction principles, including design for flexibility, disassembly, material reuse, and enhanced recycling, is crucial for significantly reducing waste, conserving resources, and minimizing negative impacts on climate and the environment on a global scale. A key enabler in this transition is Extended Producer Responsibility (EPR) - a political strategy aimed at internalizing the external costs of waste manage - ment into the value of products and holding producers accountable for the entire life cycle of their products. According to the OECD, EPR shifts the costs of waste management from public entities to producers, incentivizing the latter to prevent waste generation, notably through eco-design. While traditionally applied to waste streams such as batteries, packaging, and electronics, the adoption of EPR in the construction sector is gaining momentum.
France, the Netherlands, and India are leaders in implementing EPR frameworks for CDW. France has a comprehensive scheme, the Netherlands focuses on flat glass, and India is developing its own, builder-centric framework. Nigeria also plans to strengthen EPR. EPR systems facilitate higher-quality recycling through expanded collection networks and free take-back services for sorted materials, making secondary markets more attractive. Additionally, EPR can support reuse by establishing local storage points [1].
Ukraine has faced a significant problem of building destruction due to the war, leading to the accumulation of over 10 million tons of construction waste since 2022. In contrast to European Union countries, where the reuse of construction waste is a common practice, in Ukraine, approximately 90 % of this waste is transported to landfills. Furthermore, the active use of mineral admixtures of natural and industrial origin in the production of cementitious materials is insufficient. Despite the existence of a regulatory framework and positive international and domestic experience, waste from thermal power plants and metallurgical production is still underutilized in the construction industry [4]. The implementation of a circular economy model in the construction sector, based on 9 principles: Rethink - Reduce - Reuse - Repair - Refurbish - Remanufacture - Repurpose - Recycle - Recover [18], can help address these problems.
The application of the material reuse principle is a cornerstone of the circular economy in the construction sector. By seeking innovative approaches to repurposing building materials, companies in the construction industry can minimize waste volumes, optimize costs, and contribute to the formation of a more sustainable sector. Various methods and technologies can be used to recycle construction debris into useful building materials. The main ones are presented in Fig. 3.
The secondary processing of construction materials is a prevalent practice in the global construction industry, and Ukraine possesses certain positive experiences in this domain. A notable example of applying circular economy principles to construction waste is a project in Hostomel, implemented by the French company "Neo-Eco", where a 90 % recycling rate was achieved, with only 10 % of the Waste being sent to landfill. According to data from Ukraine Resilience, concrete and bricks were processed into fine aggregates, metal and wooden elements into chipboard, plaster into drywall, and glass and PVC were separated into soda ash, aluminum, and PVC respectively.
Within Ukraine, there are already operational enterprises engaged in the recycling of various construction materials. Among these, in the metal recycling sector, "Metinvest", "ArcelorMittal Kryvyi Rih", and the Zaporizhzhia and Dnipro Metallurgical Plants are prominent. Glass recycling is carried out by companies such as "Region-2001", "Vetropack", and "UtilVtorProm". Concrete is processed by "Tsaris", "TekhBudMekhanika", "Agropromyslova Grupa", "Grupa Kompanii Tereshchenko", and "Orga". In the field of plastic recycling, "Ekola", "TIS", "Region-2001", and "The Good Plastic Company" are active, while brick recycling is undertaken by "Aktis Group", "Forest Ukraine", and "UtilVtorProm". Wood processing typically occurs at state forestry enterprises located in each region of Ukraine.
Consequently, the technologies for constructing new buildings using secondary raw materials are not novel even for Ukraine. In light of this, the issue of expanding industrial capacities and acquiring or leasing specialized equipment requires consideration today. The resolution of this problem significantly depends on the political will of legislators, because as long as the cost of landfilling construction waste remains economically more advantageous than alternative options, the motivation to sort, reuse, and invest in the appropriate equipment will remain relatively low.
Thus, the recycling of construction materials is a crucial component of sustainable construction. Old concrete can be crushed into fine aggregates for the production of new concrete. Asphalt materials can also be crushed and reused for new asphalt pavement. Secondary metal, sourced from Ukraine's demolition zones, can be applied in the creation of new metal elements and structures. Timber from dismantled buildings can be used for the production of wood-based panels and beams. Plastic and paper waste can be recycled into ecological building blocks or other structural elements. Secondary glass is utilized for the production of glassceramic blocks, window frames, and other glass products. Recycled plastic waste can form the basis of panels for interior and exterior walls. Additionally, wood and other biomass materials are suitable for heating buildings and generating energy. Innovative 3D printing technology enables the creation of building elements from secondary materials. All these methods not only reduce waste volumes but also contribute to ecological sustainability and significantly lower construction costs through the utilization of secondary resources [21, 22].
The essence of sustainable materials and identified the fundamental principles of sustainable methods and sustainable models having been elucidated, strategies for sustainable development for specific groups of building materials were formulated (Tables 1-2). The application of material reuse and recycling, the minimization of waste generation, and the implementation of ecologically oriented design approaches enable the construction industry to enhance resource efficiency and reduce dependence on mining and logging. However, for the successful implementation of sustainable development strategies and the principles of the circular economy in the construction industry, a comprehensive approach is necessary:
- in the sphere of finance and business - systemwide lending and financing of sustainable initiatives in construction and real estate;
- in the sphere of policy and governance - procurement programs for a circular economy in construction;
- in the socio-cultural system - training for the development of sustainable skills for the entire community - designers, installers, building managers, and residents.
The presented strategies for sustainable development for each category of building materials are primarily aimed at reducing material costs through efficient resource utilization, material reuse, structural optimization, and recycling.
The digital transformation of Ukraine's construction sector can become a crucial tool for implementing sustainable development goals. Building Information Modeling (BIM) methodologies used in construction serve as a testing ground for transformation methods and models. Through digital technologies, the construction industry will be able to improve information flows, enhance the resilience of buildings, and effective - ly manage waste. Digital solutions will facilitate material reuse, efficient demolition processes, and optimized waste handling. Digital technologies will be able to support circularity, enabling the creation of sustainable circular products and enhancing customer engagement.
The implementation of sustainable development strategies in the construction industry requires significant financial investment and incentives. Following the example of developed countries, the following financial instruments can be used for the decarbonization and enhancement of energy efficiency in Ukraine's construction sector [1]:
1. Green bonds, attracting capital to finance projects such as energy-efficient buildings, renewable energy systems, and the modernization of existing structures.
2. Sustainability-linked debt, representing performance-based financing where loans and bonds are tied to specific environmental or sustainability outcomes.
3. Green mortgages, to stimulate consumer demand for sustainable housing and support the reduction of the environmental footprint of residential construction.
4. Energy service performance contracts and leasing, allowing energy service companies or utilities to finance modernization projects, eliminating the need for upfront costs for building owners.
5. Green Real Estate Investment Trusts (REITs), which pool investor resources to finance environmentally sus- tainable real estate development and have the potential to significantly scale up financing for green construction.
6. Concessional and blended finance, to attract private investment.
7. Carbon transition bonds, innovative financing mechanisms aimed at phasing out high-emission construction assets and supporting the adoption of green alternatives.
These financial instruments will be able to support interested investors in the transition to energy-efficient and sustainable building practices by increasing investment in energy-efficient renovation and sustainable construction.
Conclusion. For the successful implementation of sustainable development strategies in the construction industry, the application of sustainable materials, sustainable working methods, and sustainable business models is of paramount importance. Concurrently, ecological materials necessitate a comprehensive strategic sourcing approach encompassing cost, quality, and supplier management. Sustainable methods require effective collaboration with suppliers and development programs for cost and risk management. Sustainable models demand oversight of processes from building design to demolition and waste utilization, alongside a strong focus on cost compliance. For the realization of circular economy principles in the construction industry, effective waste management is of primary significance. Through the reuse, recycling, and repurposing of construction waste, we are capable of reducing the volumes of waste landfilled and conserving natural resources. However, such initiatives often encounter high initial investment costs, necessitating the development of comprehensive support policies and coordination among all economic entities and government bodies. This will enable the initiation of a path towards adaptation to the principles of sustainable development, which include responsible resource use, emission reduction, material reuse, and the implementation of innovative technologies. Systemic changes at the levels of state policy, corporate strategy, and educational programs are necessary, which will constitute a large-scale implementation of ecological solutions and ensure the sustainable development of Ukraine's construction industry in the face of increasing environmental challenges.
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References
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