Given the increasing severity of climate change, decarbonization strategies have emerged as a critical approach for achieving net zero emissions. By Integrating the Pollution Haven Hypothesis and the Pollution Halo Hypothesis, this study proposes a novel frameword to investigate the interrelations nexus among global value chain embeddedness (GVCE), technological capabilities, and decarbonization in subset industries. Using multiple databases, panel data was collected from 2008 to 2022 for 11 sunset industries in China. Our findings demonstrate a non-linear relationship between GVCE and the decarbonization of sunset industries, challenging the prevailing linear perspective and shedding light on the complex nature of carbon reduction mechanisms. Additionally, we identify technological spillover effects associated with participation in GVC, illustrating how firms in developing contries can utilize GVC to enhance their technological competencies while also contributing to decarbonization efforts. This research also presents empirical evidence on the heterogenous impact of GVC participation across different stages of the value chain, offering actionable insights for policymakers and industry leaders seeking to enhance carbon reduction strategies within GVC, especially in sunset industries. Our study also aligns with the two important United Nations Sustainable Development Goals: Responsible Consumption and Production (SDG 12) and Climate Change(SDG 13).