GLOBAL MECHANISMS OF GREEN CAPITALIZATION IN THE CONSTRUCTION SECTOR AND PATHWAYS FOR ADAPTATION IN UKRAINE

The article provides a comprehensive analysis of financial instruments driving the ecological transformation of the global construction sector and reveals their interaction within an integrated system of sustainability incentives. The study demonstrates that public grants and subsidies play a pivotal de-risking role, reducing transaction costs and enabling access to cheaper debt capital (through green loans and mortgages), while the bond market provides long-term liquidity, and green insurance covers residual project risks. Together, these instruments form a closed financial cycle that ensures the steady inflow of capital into sustainable construction and renovation projects.The paper explains the logic of demand among three borrower groups: households (seeking lower operational costs and greater comfort), developers and real-estate operators (access to cheaper funding, higher occupancy rates, and enhanced asset value), and public authorities (energy-efficient public housing and infrastructure to achieve national climate targets). The article identifies key barriers to scaling green finance: the high cost of sustainable materials and certification, limited SME access to capital, shortage of skilled professionals, and fragmented standards. Policy recommendations include taxonomic harmonization, targeted subsidies for energy audits and project design, securitization of green mortgages, municipal bond portfolios for deep renovation, adaptation of PACE-type models, and insurance products that reward verified energy efficiency.