Carbon dioxide (CO2) emissions associated with Portland cement (PC) production is ranked as the highest among the construction materials and it is estimated that 8% of the worlds CO2 discharges is due to PC production. As an average, the production of PC clinker including calcination process generates 0.81 kg of carbon dioxide per one kg of cement. Hence, new approaches which limit the negative environmental impacts of cement production and are aimed at the development of advanced methodologies are introduced. Implementation of lower energy consumption materials in production, which could moderately substitute PC in binders, can be addressed as one of the probable methods in mitigating environmental risks. Therefore, alternative binders fit into the most promising solutions. Present research investigates the environmental impact of the building sector, if an alternative to PC binder is used. Life cycle assessment (LCA) was used in this research to assess the environmental impact of the alternative ternary gypsum-PC-pozzolan binder in the production of mortar, and the environmental benefits were calculated and compared to traditional cement-based building materials. Phosphogypsum was considered as a secondary raw material, as in the current approach it is collected in open stacks bringing environmental concerns. SimaPro LCA software with the Ecoinvent database was used for most of the calculation processes. Results indicate that with alternative binders up to 30% of energy can be saved and 57 wt.% of CO2 emissions can be reduced, bringing positive impact on the construction industries contribution to the environment.