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The negative environmental impacts of the construction sector are an intensifying concern. Green buildings are one of the initiatives proposed to alleviate these impacts. However, the lack of green financing is a pressing issue that hinders the implementation of such practical initiatives. Despite the growing academic attention to green finance and green buildings, there are few studies on the nexus among these areas and financial institutions. This study investigated the role of financial institutions in funding green buildings, particularly in South Africa. It documented available green funding opportunities, green finance incentives, the criteria used to issue them, and the developments achieved in issuing them. Using document analysis and interviews, this study reviewed 158 documents from actively participating financial institutions (FirstRand, Nedbank, Standard Bank, Absa, and Investec) and conducted four thorough semi-structured interviews with sustainable finance consultants. The results revealed that directly involved financial institutions are driving the green finance market by offering green bonds and green loans accessible to those who hold an Excellence in Design for Greater Efficiencies certificate, which is a symbol of sustainable construction practices. However, there is a glaring need for green insurance. Furthermore, there is a noticeable imbalance in funding for the green building and energy sector. Only FirstRand and Nedbank have made noticeable advancements in funding green buildings, and these buildings have provided illustrative evidence of environmental dividends. Overall, these findings indicate that financial institutions directly engaged in mobilizing green finance tend to prioritize the energy sector over green buildings. This focus is largely influenced by South Africa’s ongoing energy crisis and its commitment to a Just Energy Transition, which helps explain the comparatively slower uptake of green building initiatives in the country. It is recommended that policymakers increase capital for green buildings, enhance the availability of green finance instruments, including green insurance, and ensure the affordability of green certificates to increase the rate of green building adoption.