The pervasive impact of industrialisation on our daily existence has precipitated carbon emissions that demand critical attention. Although international conventions and scholarly research have scrutinised carbon emission sources and reduction strategies, the integration of digital tools and databases for estimating embodied carbon emissions remains in an incipient phase. Consequently, this review study aims to seek to optimise opportunities for digital transformation and sustainable practices while addressing the digital carbon footprint in the building sector. Employing the PRISMA guidelines, we systematically analysed 59 publications amassed from Scopus and Web of Science databases. The study’s search parameters encompassed the analytical dimensions of “embodied carbon”, “emission data”, and “barriers to digital transformation”. Through this rigorous process, 32 salient challenges and barriers were synthesised, encapsulated within four overarching parameters: traceability, accuracy, auditability, and efficiency. At its core, this study’s primary objective resides in the evaluation of existing barriers and challenges within the realm of carbon emission estimation. By doing so, it aspires to proffer a cogent knowledge model capable of catalysing the development of digital methodologies and models that can, with a high degree of accuracy, assess the burgeoning digital carbon footprint within the expansive domain of the building sector.