The construction sector exerts detrimental environmental impacts on natural ecosystems. Mitigating these impacts and reducing pollution necessitates the adoption of an assessment tool. During the design phase, decisions must factor in building typology, materials, construction techniques, dimensions, functions, and contextual considerations. Crafting solutions that effectively address all these facets presents a formidable challenge. The European Union (EU) advocates for employing the Life Cycle Assessment (LCA) methodology to evaluate environmental impacts in the construction industry. This approach encompasses the entire lifecycle of a product, encompassing production, usage, and disposal stages. However, integrating additional elements such as the urban context and digital twin technologies remains intricate. Given the impending need to enhance energy efficiency in the European building stock through extensive redevelopment, this research aims to identify a robust methodology for selecting optimal building materials. This review seeks to offer an updated perspective encompassing the choice of eco-friendly building materials and the incorporation of digital twin technologies, which facilitate real-time building assessments. By amalgamating insights derived from this analysis, this research strives to contribute to a holistic framework that addresses the multifaceted aspects of sustainable construction. Such a framework would streamline the selection of environmentally conscious building materials while harnessing the potential of digital twin methodologies for rapid and precise building evaluations. Ultimately, this research aspires to bridge critical gaps in sustainable practices within the construction sector, aligning with the EU's overarching objectives of promoting greener and more efficient built environments.