The detrimental impact of anthropogenic gases such as carbon dioxide, methane, and nitrous oxide has become a pressing concern across various industries. In this study, thermally activated clay (TAC) was investigated as a substitute for Portland cement in proportions ranging from 10 to 40 wt%. Compressive strength and efficiency factors were employed to ascertain the optimal mortar mixture. Both the control mortar and the optimal blend underwent capillary water sorptivity tests. Fourier Transformed Infrared spectroscopy (FT-IR) was utilized to gain insight into the hydration process and pozzolanic reaction within the mortar mixtures. Furthermore, the study assessed the impact of the optimized blended mortar on greenhouse gas emissions through estimated carbon dioxide equivalent values. Results revealed that incorporating 30% TAC attained the maximum strength of approximately 33, 36, and 48 MPa at 3, 7, and 28 days respectively compared with the other mortars. The mortar containing 30% TAC enhances both compressive strength and efficiency factors, demonstrating effective pozzolanic activity and minimal compromise on performance. Notably, the inclusion of 30% TAC also led to reduced water absorption rates, indicating improved durability-related performance. Additionally, the study uncovered the superior performance of the 30% TAC mix in terms of efficiency factors and carbon savings. FTIR analysis provided novel insights into the hydration and pozzolanic reactions induced by TAC, resulting in the formation of compounds contributing to enhanced compressive strength over time. This research advocates for the substitution of Portland cement with TAC as a low-carbon binder alternative to traditional Portland cement binders.