Cryogenic CO2 capture technique is superior to other CO2 capture methods in terms of potential environmental protection, because it uses no chemical solvent or membrane materials that need regular replacement. However, the freezing problem of CO2 makes it difficult to achieve CO2 capture through simple gas–liquid separation, and the existing cryogenic CO2 capture techniques often require a specially designed separation equipment. In addition, cryogenic CO2 capture is generally considered a method with high energy consumption due to the need for refrigeration. This study proposes a cryogenic distillation-based CO2 capture method for natural gas with high ethane content, such as shale gas and oilfield associated gas. This method utilizes the azeotropic characteristics of CO2 and ethane to avoid CO2 freeze-out and the energy consumption for CO2 capture is minimized through process integration with natural gas liquefaction and ethane recovery. The proposed system uses the propane precooled mixed refrigerant process to provide the required refrigeration, and it is simulated in Aspen HYSYS and optimized by a combined method of a genetic algorithm and sequential optimization. The results show that the proposed process can remove up to 17 mol% of CO2 to less than 50 ppm. With extractive distillation, 99.50 % of the ethane in the feed gas is recovered with a purity of 99.50 mol%. The optimal results corresponding to the maximum allowable CO2 content to avoid its freeze-out (with a solubility margin of 500 ppm) show that when ethane content is 2–20 mol%, the specific power consumption of the system is about 0.43 kWh/Nm3(NG) with an exergy efficiency higher than 50 %. The proposed process achieves energy-saving and efficient CO2 capture method for natural gas with high ethane content.