The soil-cement-bentonite (SCB) vertical cutoff walls are commonly used to control flow of contaminated groundwater in polluted sites. However, conventional backfill consisting of Ordinary Portland cement (OPC) is associated with relatively high CO2 footprint. Potential chemical interactions between OPC and bentonite could also undermine the long-term durability of SCB materials. In this paper, we propose an innovative backfill material for cutoff walls, which is composed of MgO-activated ground granulated blast furnace slag (GGBS), bentonite and soil. The OPC-soil, OPC-bentonite-soil, and OPC-GGBS-bentonite-soil backfill materials are also tested for comparison purpose. Workability of the fresh backfills and unconfined compressive strength of aged backfills are investigated. The hydraulic conductivities of aged backfills permeated with tap water, Na2SO4 and Pb-Zn solutions are assessed. The unconfined compressive strength and hydraulic conductivity of the proposed backfill permeated with tap water for the backfills are in the range of 230-520 kPa and 1.1×10-10-6.3×10-10 m/s at 90-day-curing, respectively, depending on the mix composition. The hydraulic conductivity of the proposed MgO-GGBS-bentonite-soil backfill permeated with sodium sulfate (Na2SO4) or lead-zinc (Pb-Zn) solution is well below the commonly used limit, while the OPC-bentonite-soil backfill shows a significant loss in its impermeability. Environmental and economic analyses indicate that, compared with the conventional backfill made from the OPC-bentonite-soil mixture, the proposed backfill reduces approximately 84.7%-85.1% in CO2 emissions and 15.3%-16.9% cost. The environmental and economic advantages will 3 promote the utilization of MgO-activated GGBS-bentonite mixtures in the cutoff walls and further advocate its application in land remediation projects.