A copper-zirconia composite having an evenly distributed lamellar texture, Cu#ZrO2, was synthesized by promoting nanophase separation of the Cu51Zr14 alloy precursor in a mixture of carbon monoxide (CO) and oxygen (O2). High-resolution electron microscopy revealed that the material consists of interchangeable Cu and t-ZrO2 phases with an average thickness of 5 nm. Cu#ZrO2 exhibited enhanced selectivity toward the generation of formic acid (HCOOH) by electrochemical reduction of carbon dioxide (CO2) in aqueous media at a Faradaic efficiency of 83.5% at -0.9 V versus the reversible hydrogen electrode. In situ Raman spectroscopy has revealed that a bifunctional interplay between the Zr4+ sites and the Cu boundary leads to amended reaction selectivity along with a large number of catalytic sites.