Financial Instruments, Metrics, and Public Policies in Climate Finance in the Construction Sector: A Systematic Review

Climate finance has become a major means of fostering sustainability in the construction industry, which encounters higher pressures to mitigate its environmental footprint without sacrificing economic viability. In line with the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines, this study employs a hybrid approach, integrating a systematic literature review (SLR) and bibliometric analysis, to provide a comprehensive overview of the role and mechanisms of climate finance for sustainable practices in the construction industry. From 2019 to 2025, 176 papers were identified in the Scopus (73) and Web of Science (103) databases. The SLR enables both systematic collection and qualitative analysis of financial instruments, policy frameworks, and sustainability performance metrics, and bibliometric analysis provides a report of publication behavior, geographic distribution, and thematic network. Findings suggest intense clustering of research in countries, with India, China, and the United States as key focus areas, and that construction firms predominantly accessed climate finance on instruments including green bonds, sustainability-linked loans, public–private partnerships, and multilateral climate funds. Sustainability performance is commonly assessed using indicators such as carbon emissions, energy efficiency, lifecycle costs, and environmental, social, and governance (ESG) metrics. The findings also highlight the critical role of public policies, such as green procurement, carbon pricing, and fiscal incentives, in enabling sustainable construction practices. From a theoretical perspective, this study contributes to the understanding of how financial mechanisms, policy frameworks, and sustainability metrics interact to drive sectoral transformation. Future research should focus on standardizing sustainability metrics, evaluating financing impacts, and expanding studies in emerging economies.