Europe, just like the rest of the world, is facing issues related to climate change and all the consequences that climate change brings. Due to the challenges ahead, the European Union has launched the Green Deal, which encompasses a change in the legislative framework and the implementation of a series of measures across all sectors impacting greenhouse gas emissions, as well as the entire economy and financial sector. This is a growth strategy with the main objective of transforming European society into a modern, competitive and resource-efficient aiming to achieve net-zero greenhouse gas emissions by 2050. This paper illustrates the alignment of the Green Deal and the principles of a circular economy through the implementation of European and Croatian legislations. These measures are necessary to effectively utilize resources and reduce greenhouse gas emissions. Special focus is placed on the construction sector, which consumes significant amounts of materials and energy, however it also introduces circular economy principles, such as life cycle analysis methods and Green Deal measures that influence this sector. The paper also highlights the necessary multidisciplinarity in the construction sector in order to reduce emissions throughout all phases of a building's life cycle.