The widespread use of fossil fuels has led to a significant increase in carbon dioxide and other greenhouse gas emissions, contributing to the adverse effects of global climate change and impacting ecosystems worldwide. These rising emissions not only create environmental problems but also pose a serious threat to the earth′s climate stability and biodiversity. Among the various methods to reduce carbon emissions, Carbon Capture, Utilization, and Storage (CCUS) technology stands out as a crucial tool for achieving long-term carbon dioxide reduction. CCUS technology captures carbon dioxide from emission sources such as coal-fired power plants, industrial processes, and even directly from the atmosphere. This study focuses on the potential of microalgae for carbon sequestration, highlighting their ability to capture and store carbon. To further enhance the carbon sequestration ability of microalgae, it is essential to optimize their growth conditions. Factors such as light intensity, temperature, pH, nutrient availability, and carbon dioxide concentration can significantly impact the efficiency of carbon sequestration by microalgae. Researchers have been exploring various strategies, including random mutagenesis, adaptive laboratory evolution, and genetic engineering, to select microalgae species with desirable traits. These traits include a rapid growth rate, strong tolerance to stress, high CO_2 fixation efficiency, and the ability to produce large biomass. By employing these approaches, scientists aim to enhance the carbon peaking and carbon neutrality efforts simultaneously. Additionally, this research will provide a robust and scalable solution, supporting the full implementation of sustainable development strategies. Microalgae carbon sequestration technology is expected to play a significant role in combating global warming and promoting environmental sustainability by capturing and storing carbon dioxide efficiently. Overall, the utilization of microalgae for carbon sequestration has enormous potential. By optimizing growth conditions and employing advanced genetic engineering techniques, microalgae-based CCUS technology can become a key contributor to mitigating climate change, preserving biodiversity, and facilitating the transition towards a sustainable future.