For the sixth annual AZ Awards, our intrepid jury narrowed the field from over 800 submissions, received from dozens of countries, to select just 48 finalists that stood above the rest. In addition to presenting the AZ Award winners, Azure recognized these projects, products and concepts with Awards of Merit.

PK Arkitektar’s 20 cottages in southwestern Iceland raise the bar for what sustainable, context-sensitive design can achieve. Based on vernacular turf houses, with exteriors clad in hardwood charred to enhance its durability, the dwellings are so thoroughly integrated into the landscape that they seem almost biological. Earth mounds excavated during construction were used to build bunkers that shield the outdoor terraces from wind. Most strikingly, the rooftops are covered in vegetation, making them as lush and green as the surrounding hills.

Location: Brekkuskógur, Iceland

Firm: PK Arkitektar, Iceland

Team: Fernando de Mendonca and Palmar Kristmundsson, with Andrew Burges, Liidia Grinko, Sunna Dóra Sigurjónsdóttir and Erna Vestmann ­