Abstract A common starting point in assessing greenhouse gas (GHG) reduction policy implications in the built environment is to look at industry specific policies. This paper addressed the glaring gap between national all-economy policy options that actually determine industry-specific programs, and their downstream impacts and implications to the building and construction sector. National carbon policy schemes were organised into two basic types: indirect pricing mechanisms, and direct pricing mechanisms. Their features and comparative strengths and limitations were critically reviewed under a common framework, drawing from a wide body of literature. The status of the application of the GHG reduction policies in China was reviewed. A green building case is studied to quantitatively present the effectiveness and deficiencies of the current GHG mitigation policies in the building sector of China, and their implications to a building's life cycle. Based on China's current status of the policy system, this paper identifies the future direction of building's GHG mitigation policies of China. Policies directly aiming to GHG mitigation in the building sector should be implemented in holistic and comprehensive pathway, to balance the costs and benefits of the stakeholders for the promotion of building GHG mitigation technologies.