The objective of this study is to explore whether the green recovery packages issued by the Swedish government are aligned with the work of the construction and building industry to become climate-neutral by 2045. We have interviewed heads of sustainability of some of the largest companies in the industry and surveyed companies that have signed the Roadmap for a fossil-free construction and building industry1. Our results show that market-related challenges constitute the most important challenges to the environmental and climate work of the companies in our study. To better respond to these challenges, they require policies that reward frontrunners, primarily green public procurement, and tougher standards and norms. They also requested investments and policies that support the transition to a circular economy. We conclude that while green public procurement is not among the policies and investments included in the recovery packages, other parts are well aligned with the challenges encountered, requested investments and policies, and on-going work. This is particularly true for the above-mentioned investments related to the transition to a circular economy. Further, the study enables us to conclude that it is important to consider the long-term effects of green recovery packages and their potential for return-on-investment in terms of reductions in greenhouse gas (GHG) emissions per SEK. Such packages will also have a better effect if they support on-going environmental and climate work, initiate new actions, and are designed with a systems perspective that facilitates joint action between different companies along the entire supply chain.