To assess the evolution trend of China's carbon emissions (CEs) and related driving factors, this paper used scenario analysis to predict China's CEs from 2017 to 2040 at the industrial level. Then, LMDI decomposition model was applied to evaluate the driving forces of CEs changes during 1997-2040. Finally, the ST-LMDI model was used to explore the CEs reduction potential and the potential reduction path at provincial level. The results showed that (1) as the reduction of energy intensity cannot offset the growth of industrial scale, the CEs of all industries have shown an increasing trend from 1997 to 2017; (2) In the current policy scenario, China's CEs cannot reach the peak before 2040. And only in the sustainable development scenario, the CEs of the three industries will all reach the peaks before 2030. And the development of non-fossil energy will reduce CEs by more than 30%; (3) Hebei, Shanxi, Inner Mongolia, Ningxia, and Heilongjiang are key provinces and improving energy efficiency of the secondary industry is a potential way to promote CEs reduction.