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Production and emission of CO₂ from different sources have caused significant changes in the climate, which is the major concern related to global warming. Among other CO₂ removal approaches, microalgae can efficiently remove CO₂ through the rapid production of algal biomass. In addition, microalgae have the potential to be used in wastewater treatment. Although, wastewater treatment and CO₂ removal by microalgae have been studied separately for a long time, there is no detailed information available on combining both processes. In this review article, microalgae-based CO₂ biofixation, various microalgae cultivation systems,̄ and microalgae-derived wastewater treatment are separately discussed, followed by the concept of integration of CO₂ biofixation process and wastewater treatment. In each section, details of energy efficiency and differences across microalgae species are also given.