Abstract The elevated level of carbon dioxide (CO 2 ) in the troposphere is playing a crucial role in changing the earth's climatic system. Excess CO 2 concentration is trapping a substantial proportion of heat imparting adverse range of environmental effects like extreme weather events, agricultural impacts and disruption of the ecosystem. Strategies such as CO 2 capturing and storage are being pursued using polyoxometalates (POMs) to mitigate the elevated level of CO 2 and their efficient conversion into useful chemicals. This review outlines the importance of CO 2 reduction by electrocatalytic and photocatalytic reduction of CO 2 . POMs have several advantages for CO 2 activation because of their promising catalytic activity, high selectivity and versatility for incorporating different metal ions and ligands. The efficient redox active metal center facilitates the conversion of CO 2 by providing sufficient activation energy. Their robust structure also enables them resist harsh conditions, including high temperature and acidic or basic conditions. Owing to these properties, POMs can be a catalyst, co‐catalyst, photosensitizer or multielectron donor for CO 2 reduction. Finally, we stated the challenges and future insight for CO 2 activation using POMs.