Under the development goal of “carbon emissions, carbon neutrality”, carbon emission trading policies, as an important means of market-based environmental regulation, is of great significance to the low-carbon development in various industries. On the basis of panel data from various provinces and municipalities in China from 2007 to 2021, an empirical study has been conducted for an analysis of the impact of carbon emission trading policies on the green development level of the construction industry by using the double differential method. The research results indicate that an implementation of carbon emission trading policies helps to significantly improve the level of green development in the construction industry. This improvement can be achieved through such mechanisms as technological innovation and energy structure transformation in the construction industry, with mediation values of 0.015 and 0.046, respectively. In view of this, it is necessary to establish a more comprehensive carbon emission trading system, much clearer trading rules and market mechanisms so as to realize the green development in the construction industry.