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An exponential rise in global pollution and industrialization has led to significant economic and environmental problems due to the insufficient application of green technology for the chemical industry and energy production. Nowadays, the scientific and environmental/industrial communities push to apply new sustainable ways and/or materials for energy/environmental applications through the so-called circular (bio)economy. One of today’s hottest topics is primarily valorizing available lignocellulosic biomass wastes into valuable materials for energy or environmentally related applications. This review aims to discuss, from both the chemistry and mechanistic points of view, the recent finding reported on the valorization of biomass wastes into valuable carbon materials. The sorption mechanisms using carbon materials prepared from biomass wastes by emphasizing the relationship between the synthesis route or/and surface modification and the retention performance were discussed towards the removal of organic and heavy metal pollutants from water or air (NOx, CO2, VOCs, SO2, and Hg0). Photocatalytic nanoparticle–coated biomass-based carbon materials have proved to be successful composites for water remediation. The review discusses and simplifies the most raised interfacial, photonic, and physical mechanisms that might take place on the surface of these composites under light irradiation. Finally, the review examines the economic benefits and circular bioeconomy and the challenges of transferring this technology to more comprehensive applications, Open access funding provided by Universitat Rovira i Virgili. Authors are thankful for the support from Grant PID2021-123665OBI00 and TED2021-129343B-I00 funded by MCIN/AEI/ 10.13039/501100011033 and, as appropriate, by “ERDF A way of making Europe”, by the “European Union” or by the “European Union NextGenerationEU/PRTR”. Dr Ridha Djellabi acknowledges Maria Zambrano Grants-2021URV-MZ-15