As global warming turns to be a very serious global problem, most worlds' major carbon emitting countries have enacted climate-change laws to tackle carbon emissions. Enterprises strike a balance between profit objective and emission reduction obligations. As capture technologies of carbon dioxide are getting economically feasible and operable in mature market, carbon dioxide can be captured to be used or sold for profit. This paper addresses carbon reduction and utilization strategy. A carbon capture and distribution network design problem is studied. A mathematical model of the addressed problem is proposed with the objective of maximizing the profit of the network on carbon reduction and utilization. Computational results have demonstrated the effectiveness of the model of the carbon capture and distribution network design problem. © 2010 IEEE.