The over 15 million metric tonnes of carbon black produced annually emit carbon dioxide in the range of 29–79 million metric tonnes each year. With the renaissance of carbon black in many new renewable energy applications as well as the growing transportation sector, where carbon black is used as a rubber reinforcement agent in car tires, the carbon black market is expected to grow by 66% over the next 9 years. As such, it is important to better understand energy intensity and carbon dioxide emissions of carbon black production. In this work, the furnace black process is studied in detail using process models to provide insights into mass and energy balances, economics, and potential pathways for lowering the environmental impact of carbon black production. Current state-of-the-art carbon black facilities typically flare the tail gas of the carbon black reactor. While low in heating value, this tail gas contains considerable amounts of energy and flaring this tail gas leads to low overall efficiency (39.6%). The efficiency of the furnace black process can be improved if the tail gas is used to produce electricity. However, the high capital investment cost and increased operating costs make it difficult to operate electricity generation from the tail gas economically. Steam co-generation (together with electricity generation) on the other hand is shown to substantially improve energy efficiency as well as economics, provided that steam users are nearby. Steam co-generation can be achieved via back-pressure steam turbines so that the low-pressure exhaust steam (∼2 bar/120 °C) can be used locally for heating or drying purposes. Furthermore, the potential of utilizing hydrogen to reduce carbon dioxide emissions is investigated. Using hydrogen as fuel for the carbon black reactor instead of natural gas is shown to reduce the carbon dioxide footprint by 19%. However, current prices of hydrogen lead to a steep increase in the levelized cost of carbon black (47%).