Triacetic acid lactone (TAL) is a bio-privileged molecule with potential as a chemical precursor, traditionally synthesized from petroleum. Current trends are shifting towards the use of renewable biomass or CO2-derived feedstocks to enhance sustainability. However, comprehensive studies on the techno-economic viability and carbon life cycle of such methods are limited. This study assesses TAL production from conventional glucose and a novel approach co-feeding Yarrowia lipolytica (YL) with glucose and formic acid (FA), aiming for a more cost-effective and eco-friendly process. We confront the inherent challenges in this process by exploring different technology scenarios using kinetic bioprocess modeling underpinned by techno-economic analysis (TEA) and life cycle assessment (LCA) to identify the most cost-effective and sustainable routes to TAL production. A noteworthy component of our investigation centers around the prospect of recycling and utilizing the CO2 emitted from the YL bioreactor to eliminate greenhouse gas emissions inherent in aerobic fermentation processes. The study combines TEA and LCA to dissect the proposed TAL bio-production routes, evaluating the sustainability of the process and the implications of net-zero greenhouse gas emission manufacturing. We employed SuperPro Designer and Aspen software for process simulation and energy balance computations. The results underscore the benefits of CO2 recycling in TAL production, with an estimated minimum selling price (MSP) slightly increasing by 6.21-7.80% compared to traditional methods, but significantly undercutting the market price of $51000/mt-TAL and achieving net-negative CO2 emissions. This research illustrates a viable route to bio-production with net-zero emissions, providing a model for future bioprocessing and industrial practices.