This study examines the feasibility of developing low-CO2 cement using calcined red mud (RM) and explores positive scenarios that simultaneously attain technical, environmental, and economic benefits in reference to conventional fly ash (FA) and ground granulated blast furnace slag (GGBFS) cements. Based on the variables of RM's content and calcination temperature, we investigated the fresh properties (paste rheology and mortar flowability), strength development, microstructure, embodied CO2 emissions, and cost of the RM-blended cement. The results show that there was an optimal range of RM's calcination temperature (400–600 °C) that improved the cement paste viscosity while attaining a higher strength than that of FA cement. Considering the cradle-to-gate CO2 emissions and cost of cement production, the optimal cement composition is comprised of up to 30% RM calcined at 600 °C, where the cement cost is lowered by 19.3% compared to the FA reference having a comparable CO2 footprint. According to the geographical analysis, the calcined RM shows minimal advantages over GGBFS but could substitute FA as a cleaner, cheaper, and more reactive supplementary cementitious material in regions where electricity grid is dominated by clean energy. Therefore, RM offers a plausible solution to future low-CO2 cement in light of the increasing shortage of FA led by the declining use of coal-powered electricity.