Abstract: In the context of carbon peaking and carbon neutrality, reducing carbon emissions and improving energy efficiency are major challenges for China's industrial development at this stage. To seek the optimal path for energy saving and emission reduction as well as profit maximization in the coal supply chain, a system dynamics model of carbon emissions and total profit of the coal supply chain was established based on system dynamics methods and principles through practical research. Dynamic simulation experiments were conducted, and three emission reduction paths were proposed specifically: utilizing coalbed methane, generating electricity from coal gangue, and increasing environmental protection investment. The model was also used for effect verification and sensitivity analysis. The results show that all three paths can reduce carbon emissions, with the proportion of electricity generated from coal gangue having the greatest impact on carbon emissions. Within a certain range, increasing the utilization rate of coalbed methane can increase total profits, while an increased proportion of electricity generated from coal gangue and a higher ratio of environmental protection investment will both lead to a decrease in total profits.