The European Union’s carbon border tax will put a direct price on the embodied carbon in imported steel and cement from 2026, and the UK is expected to adopt a similar approach. This development links tariff policy with whole life carbon performance, forcing the construction supply chain to quantify environmental impact across design, procurement, and material selection. Producers offering low carbon building materials and transparent environmental product declarations (EPDs) will hold a competitive advantage. Contractors and developers will shift towards sustainable construction specifications that prioritise low embodied carbon materials and verified life cycle cost data to achieve net zero whole life carbon outcomes.

Expanding ESG disclosure rules across the UK and EU are making whole life carbon assessment and lifecycle assessment mandatory tools in sustainable building design. Detailed carbon accounting will become part of every project’s documentation, and environmental sustainability in construction will rely on measurable data rather than marketing claims. This aligns with evolving circular construction strategies that promote resource efficiency in construction and end-of-life reuse, strengthening the circular economy in construction markets.

Technological innovation continues to broaden the definition of sustainable infrastructure. Flocean’s forthcoming subsea desalination facility in Norway demonstrates how eco-friendly construction and renewable building technologies can reduce both energy consumption and the carbon footprint of construction. Growth in US renewable generation capacity to more than 1TW by 2035 will underpin electrified, low carbon design across heating, equipment, and site operations—key enablers of net zero carbon buildings and carbon neutral construction practices.

Across global markets, the environmental impact of construction is becoming inseparable from commercial performance. Developers integrating sustainable material specification, BREEAM or BREEAM v7 certification, and whole life carbon assessment frameworks will enhance building lifecycle performance and comply with the tightening standards of green construction. Early alignment with sustainable building practices and carbon footprint reduction targets will secure smoother approvals and long-term cost resilience, while late adopters face financial and reputational risks as the sector accelerates towards measurable net zero carbon and sustainable urban development.