This study provides an in-depth examination of how formic acid (HCOOH) can be produced through the hydrogenation of CO2 obtained from a Carbon Capture and Utilization (CCU) system, all within the goal of promoting sustainable chemicals and reducing carbon emissions. The research unfolds in three phases: (i) exploring where we can sustainably source CO2 and H2; (ii) using computer models to compare the traditional route (methyl formate hydrolysis) with the innovative CCU approach for making HCOOH; and (iii) performing an environmental comparison of both technologies using Life Cycle Assessment (LCA) in the consequential mode as metric. The comparison is conducted for several indicators, including Global Warming Potential, Primary Energy Demand, Ozone Formation in Human Health, Fine Particulate Matter Formation, and Terrestrial Acidification. The results show a 75% to 87% reduction in environmental impacts with the CCU system compared to traditional techniques. While it’s clear that the alternative process is more eco-friendly, it’s also essential to consider factors such as the local electricity supply and natural gas usage that may influence the overall impact. The analysis also encourages designers and decision-makers to consider environmental factors when developing new, innovative technologies.