In light of the depletion of fossil fuels and the increased daily requirements for liquid fuels and chemicals, CO₂ should indeed be regarded as a valuable C₁ additional feedstock for sustainable manufacturing of liquid fuels and chemicals. Development and deployment of CO₂ capture and chemical conversion processes are among the grand challenges faced by today’s scientists and engineers. Very few of the reported CO₂ capture and conversion technologies have been employed for industrial installations on a large scale, where high-efficiency, cost/energy-effectiveness, and environmental friendliness are three keys factors. The CO₂ capture technologies from stationary sources and ambient air based on solvents, solid sorbents, and membranes are discussed first. Transforming CO₂ to liquid fuels and chemicals, which are presently produced from petroleum, through thermochemical, electrochemical, photochemical, and biochemical routes are discussed next. The relevant state-of-the-art computational methods and tools as a complement to experiments are also briefly discussed. Finally, after pointing out the advantages and disadvantages of the currently available technologies for CO₂ capture and conversion, ideas and perspectives for the development of new techniques, opportunities, and challenges are highlighted.