This chapter examines the role of methanol as a pivotal chemical feedstock and its potential to decarbonize the chemical industry. Methanol is already used extensively in the production of formaldehyde, acetic acid, methyl tert-butyl ether (MTBE), and many other chemicals. It also serves as a precursor for olefins and aromatics via methanol-to-olefins (MTO) and methanol-to-aromatics (MTA) processes. This chapter describes how methanol is industrially synthesized from CO and H₂ via catalytic hydrogenation of CO₂ and CO, using Cu/ZnO-based catalysts under moderate temperatures and high pressures. The equilibrium yield of methanol in these processes depends strongly on reaction temperature, pressure, and feed composition, making process optimization critical. Modern methanol synthesis plants operate with high efficiency and are increasingly designed to integrate renewable hydrogen and captured CO₂ to produce low-carbon or carbon-neutral methanol. Life-cycle assessments reveal that switching to CO₂-derived methanol can significantly reduce the carbon footprint of downstream chemical products. Through techno-economic and environmental comparisons, this chapter underscores methanol’s scalability and feasibility as a cornerstone of sustainable chemical manufacturing.