Mechanisms for Attracting Investment into Green Building Projects

Аннотация

This article examines the specific mechanisms OPEN ACCESS by which capital is mobilized for green building SUBMITED 21 March 2025 ACCEPTED 25 April 2025 initiatives. Against a backdrop of intensifying PUBLISHED 27 May 2025 institutional pressure, an expanding climate agenda VOLUME Vol.07 Issue 05 2025 and the reallocation of global investment flows, this CITATION topic has taken on heightened importance. Yet, despite Vadim Grepan. surging interest in sustainable development projects, COPYRIGHT the financial mobilization instruments in this sector © 2025 Original content from this work may be used under the terms remain fragmented, weakly institutionalized and poorly of the creative commons attributes 4.0 License. harmonized with existing regulations. The study’s aim is to identify the array of active financial tools and to assess the barriers that hinder the flow of sustainable investment into environmentally focused construction. A review of current literature reveals a persistent disconnect between declared sustainable- development policies and the actual structure of investment decision-making—particularly between macro-level strategies and on-the-ground regulatory practices. The analysis demonstrates that the prevailing approach within the financial-institutional environment is project-specific and discrete, while systemic mechanisms—such as coordinated institutional frameworks, risk-standardization protocols and the integration of environmental requirements into mainstream credit and banking practices—remain underdeveloped. The author’s contribution lies in an interdisciplinary systematization of financing sources and a taxonomy of the constraints involved. These findings will inform researchers in environmental finance, urban studies and public policy, as well as practitioners—investors, developers and regulators— seeking to foster more coherent, scalable investment in green construction. Keywords: public-private partnership, green building, The American Journal of Management and Economics Innovations 83 https://www.theamericanjournals.com/index.php/tajmei climate regulation, investment mobilization, project implementation challenges. J. Kantorowicz and finance, sustainable development, financial colleagues [8] explore how sovereign green debt instruments, ecology. instruments can catalyze sustainable investment flows. Introduction: Contemporary urbanization exerts The second group addresses public–private partnership growing ecological pressure on natural systems, creating models and policy influences. T. A. Golovina [5] an urgent need to rethink architectural and construction demonstrates the potential of concession agreements practices. Although there is an increasingly widespread to attract private capital to green‐building projects in rhetorical commitment to the principles of sustainable partnership with government bodies. C. V. Diezmartínez development, green building projects still encounter and A. G. Short Gianotti [2] analyze municipal financial significant investment-related barriers. policies’ effects on urban climate initiatives, emphasizing equitable resource allocation across city A primary challenge is that environmentally focused districts. development initiatives are often viewed by investors as carrying elevated risk, extended payback periods and Technological and market dynamics form the third high levels of technological uncertainty. This perception category. R. Zhao et al. [12] apply evolutionary game severely hampers the establishment of stable financing theory to model stakeholder strategy co‐evolution streams and limits the broader adoption of green within the green‐building innovation ecosystem. L. Qin standards within the construction sector. and coauthors [9] describe fintech platforms’ role as integrators between environmental objectives and Against the backdrop of an intensifying climate agenda financial instruments, while B. Xi and W. Jia [10] assess and a shift in financial markets toward environmental how carbon‐pricing regimes influence corporate priorities, there is a pressing need to systematize and incentives to adopt green technologies, tracing the critically analyze the mechanisms for mobilizing capital pathway from regulatory signals to innovation into sustainable construction. This study aims to identify investments. the most effective instruments for channeling investment into eco-responsible development and to The fourth group comprises empirical studies that assess the institutional conditions that enable the flow quantify the impact of green‐finance mechanisms. X. Ye of both private and public resources into green urban and X. Tian [11] use a quasi‐natural experiment to projects. measure pilot‐zone effects on corporate ESG metrics, demonstrating a correlation between regulatory