The European Union’s carbon border levy, set for 2026, marks a decisive shift toward sustainable construction and the management of embodied carbon. The policy will impose costs on high-emission imports of cement and steel, favouring producers able to validate low embodied carbon materials and low carbon design. The change aligns with growing demands for whole life carbon assessment and transparent environmental product declarations (EPDs), influencing procurement and contract structures across supply chains. Developers embracing resource efficiency in construction and life cycle thinking in construction will mitigate exposure to carbon pricing and strengthen competitiveness under tightening regulations.

Expanding renewable capacity, particularly in the United States, is expected to exceed one terawatt by 2035, reinforcing the decarbonisation of energy-intensive materials. Renewable building materials, eco-friendly construction processes, and electrified manufacturing will reduce the carbon footprint of construction while improving long-term building lifecycle performance and life cycle cost predictability. This clean energy boost underpins the transition to net zero carbon buildings and carbon neutral construction, driving measurable reductions in the environmental impact of construction.

Innovation in water systems is extending the logic of circular economy in construction to infrastructure. Norway’s forthcoming subsea desalination plant suggests a future of green infrastructure and sustainable urban development built on efficiency and resilience. These advances support eco-design for buildings, sustainable building practices, and decarbonising the built environment. Companies integrating whole life carbon metrics, sustainable material specification, and circular construction strategies today will secure future-proof positions in a market where net zero whole life carbon performance defines value and sustainability directly shapes margins.