Purpose of Review <p>This review examines recent advances in exploring the potential of microalgae for simultaneous CO₂ sequestration and the sustainable biosynthesis of high-value carotenoids, specifically astaxanthin and lutein. It aims to highlight integrated approaches that align microalgal biotechnology with global sustainability targets.</p> Recent Findings <p>Drawing on a detailed analysis of recent experimental and technological studies, this review explores innovations in photobioreactor engineering, nutrient regime optimization, genetic and metabolic engineering, and the use of industrial flue gases to enhance CO₂ uptake by microalgae. The review also examines how carotenoid production is tightly linked to the microalgal life cycle: lutein is predominantly synthesized during active growth to support photosynthesis, while astaxanthin accumulates under stress conditions for cellular protection. Recent advancements in cultivation strategies and green extraction technologies have enhanced the yield and purity of these carotenoids, enabling broader industrial applications across nutraceuticals, pharmaceuticals, cosmetics, and aquaculture.</p> Summary <p>By analyzing multidisciplinary and biorefinery developments, this review demonstrates that carbon capturing with carotenoid biosynthesis integration in microalgae systems supports Sustainable Development Goals (SDGs) 13 (Climate Action) and 12 (Responsible Consumption and Production). The dual focus on environmental remediation and bioactive production underlines microalgae’s potential as scalable, sustainable platforms in the emerging bioeconomy.</p>