Abstract Mineral carbonation is a carbon utilisation technology in which an alkaline material reacts with carbon dioxide forming stable carbonates that can have different further uses, for instance as construction material. The alkaline material can be a residue from industrial activities (e.g. metallurgic slags) while CO2 can be recovered from industrial flue gasses. Mineral carbonation presents several potential environmental advantages: (i) industrial residues valorisation, (ii) CO2 sequestration and (iii) substitution of conventional concrete based on Portland cement (PC). However, both the carbonation and the CO2 recovery processes require energy. To understand the trade-off between the environmental benefits and drawbacks of CO2 recovery and mineral carbonation, this study presents a life cycle assessment (LCA) of carbonated construction blocks from mineral carbonation of stainless steel slags. The carbonated blocks are compared to traditional PC-based concrete blocks with similar properties. The results of the LCA analysis show that the carbonated blocks present lower environmental impacts in most of the analysed impact categories. The key finding is that the carbonated blocks present a negative carbon footprint. Nonetheless, the energy required represents the main environmental hotspot. An increase in the energy efficiency of the mineral carbonation process and a CO2 valorisation network are among the suggestions to further lower the environmental impacts of carbonated blocks production. Finally, the LCA results can promote the development of policy recommendations to support the implementation of mineral carbonation technology. Further research should enable the use of mineral carbonation on a broader range and large volume of alkaline residues.