China is undertaking a huge number of building and infrastructure projects. As a large consumer of energy-intensive building material, the construction activities provoke large direct carbon emissions in upstream industrial sectors (i.e. embodied carbon emissions). This paper aims to explore how construction-related climate policies could contribute to future national carbon emission mitigation efforts by employing a demand-side input-output model and scenario analysis. First, a hypothetical extraction approach is used to estimate the overall carbon emissions induced by the construction sector in the base year. Then scenario analysis is conducted to quantify the sector's technical potential for carbon mitigation in 2030 and 2050. We find that implementing construction-related climate measures in China could mitigate 2.5 Gt construction-induced CO2 in 2030, and 6.4 Gt in 2050 — more than Europe's annual total carbon emissions in 2015. More efficient electricity use could make a substantial contribution in the short-term. However, material-related initiatives, especially those focused on metal recycling, could yield significant carbon mitigation from 2030 onwards. Our findings suggest China to optimize the relationship between urbanization and construction to comply with the country's climate commitments better. Mechanisms to reform supply-side incentives, such as mandatory carbon labelling for construction material throughout the supply chain, could offer immediate benefits.