<p>The continued reliance on fossil fuels has led to significant environmental challenges, including global warming driven by rising atmospheric CO₂ levels. In response, the electrochemical reduction of CO₂ using renewable electricity has emerged as a promising strategy to produce high-energy–density chemicals and fuels. However, the reduction of CO₂ remains a complex and energy-intensive process due to the complex reaction pathways, complex surface interactions, and process complexity. The reaction is further complicated by the competition with the hydrogen evolution reaction (HER), which reduces selectivity for CO₂ reduction products. To improve conversion efficiency, catalysts with high activity and selectivity for CO₂ conversion are needed, and recent studies highlight the importance of structural factors, such as atomic arrangement, electronic structure, and oxidation state, in determining catalyst performance. Furthermore, the dynamic nature of catalysts under reaction conditions, including changes in surface composition and the influence of adsorbed ions, adds complexity to the understanding of CO₂ electroreduction process. We discuss catalysts surface dynamics for CO₂ reduction and the underlying mechanistic insights, focusing on how structural factors and interfacial interaction influence catalyst behavior. Additionally, the interplay of the local microenvironment in CO₂ electrolysis and the role of the surface configuration in affecting the local environment for high performance CO₂ reduction, offering valuable insights into optimizing catalyst design for more efficient and selective CO₂ conversion.</p>