Challenging climate goals demand immediate greenhouse gas emissions reductions for long-term temperature stabilization. Given the nearly linear relationship between warming and cumulative net emissions, the carbon budget approach is a useful tool to quantify remaining carbon allowances for countries, sectors, and even buildings. The built environment plays a crucial role in today’s carbon emissions and future reduction potentials. Although much progress has been achieved towards energy efficient buildings, less attention has been given to the impact of materials put in place. Furthermore, the construction sector lacks of quantified reduction efforts and time horizon limits to clearly define a climate neutrality pathway. This article proposes a definition of yearly targets until 2050 for the operational and embodied carbon of buildings in line with a global 1.5 °C carbon budget and the Swiss climate strategy. The proposed targets are then compared with the impact of current practices and future technical developments. Gaps between targets and practices are quantified and discussed to better understand the upcoming challenges of the Swiss construction sector.