<p>This paper considers a two-echelon inventory model containing a producer and a supplier under a stochastic environment with carbon emission reductions. Globally, governments have become more aware of ecological issues, resulting in supply chains introducing the idea of protecting the environment. All the people of the world know very well that a large amount of carbon emissions are generated by the industry. The release of carbon in the atmosphere is done by carbon emissions. The cost per unit of greenhouse gas emissions has been considered here as a measure to discourage industry from emitting harmful gases. This study considers the effect of a machine breakdown, reliability and shortages. It is inevitable that defective items will be produced and production equipment will breakdown randomly in real-world manufacturing systems. In this paper, it can lead to three outcomes; no breakdown, breakdown with no shortage, and breakdown with shortages. The shortage, which occurred due to breakdown in production, is considered to be fully backlog. Based on the renewal reward theorem, the excepted total cost has been determined, and the optimal production policy has been determined using Newton Rapshon, where the initial value has been determined by using the bisection method.</p>