Against the backdrop of achieving carbon neutrality by 2060, the dual pressures of ecological and economic sustainability in the central and western regions urgently need to be alleviated. Therefore, based on the perspective of industrial development and urbanization, the provincial Panel data from 2000 to 2018 in the central and western regions are used to build a spatial lag model to simulate the spatial relationship between industrial development, urbanization, and carbon emissions. The challenges faced by industrial development in the central and western regions are a microcosm of the prominent problems exposed in China's current economic development. Analyze the problems and constraints of industrial structure optimization and upgrading, and propose corresponding countermeasures and suggestions, to be helpful for the adjustment of industrial structure in the central and western regions.