Abstract: This paper analyzes the potential for carbon emission reduction through the interaction between new energy vehicles and smart grids, discussing how the optimization of energy efficiency and balancing of grid loads can be achieved through Vehicle-to-Grid (V2G) technology. The interaction between new energy vehicles and smart grids can enhance energy utilization efficiency, optimize grid management, and reduce reliance on fossil fuels by leveraging renewable energy sources, thereby achieving the goal of carbon emission reduction. However, this process faces multiple challenges including technological integration, cost-effectiveness, policy support, and societal acceptance. The paper proposes a series of strategic recommendations, including promoting technological standardization, enhancing policy and economic incentives, and increasing public awareness and participation, to support the effective interaction between new energy vehicles and smart grids, and to achieve long-term carbon emission reduction goals.