In response to global climate change and the need for sustainable energy development, China has proposed the strategic objective of "Carbon Peaking and Carbon Neutralization". Through scientific and systematic utilization of urban underground space, this is expected to effectively support carbon emission reduction and carbon sink capacity expansion. First, based on the natural resource and artificial building properties of underground space, two ways of reducing carbon emissions and increasing carbon sink in underground space are presented, namely, replacing fossil energy with underground renewable clean energy, and replacing surface land with underground space to increase urban ecological green land. Second, relying on practical examples and relevant data, the relationship between the development and utilization of urban underground space resources and the strategic objective of "Carbon Peaking and Carbon Neutralization" is analyzed from multiple perspectives, including enhancing carbon absorption capacity, reducing energy consumption and promoting carbon storage and sequestration, as well as optimizing energy consumption structure. Last, the strategies for the development and utilization of underground space in the context of "Carbon Peaking and Carbon Neutralization" are put forward, including shifting from project construction to resource and ecological environment protection, switching from surface expansion to coordinated surface development and underground development, seeking the integration of project construction technologies and lowcarbon ecological technologies, and moving from single resource development to comprehensive utilization.