China faces a difficult choice of maintaining socioeconomic development and carbon emissions mitigation. Analyzing the decoupling relationship between economic development and carbon emissions and its driving factors from a regional perspective is the key for the Chinese government to achieve the 2030 emission reduction target. This study adopted the logarithmic mean Divisia index (LMDI) method and Tapio index, decomposed the driving forces of the decoupling, and measured the sector’s decoupling states from carbon emissions in Xinjiang province, China. The results found that: (1) Xinjiang’s carbon emissions increased from 93.34 Mt in 2000 to 468.12 Mt in 2017. Energy-intensive industries were the key body of carbon emissions in Xinjiang. (2) The economic activity effect played the decisive factor to carbon emissions increase, which account for 93.58%, 81.51%, and 58.62% in Xinjiang during 2000–2005, 2005–2010, and 2010–2017, respectively. The energy intensity effect proved the dominant influence for carbon emissions mitigation, which accounted for −22.39% of carbon emissions increase during 2000–2010. (3) Weak decoupling (WD), expansive coupling (EC), expansive negative decoupling (END) and strong negative decoupling (SND) were identified in Xinjiang during 2001 to 2017. Gross domestic product (GDP) per capita elasticity has a major inhibitory effect on the carbon emissions decoupling. Energy intensity elasticity played a major driver to the decoupling in Xinjiang. Most industries have not reached the decoupling state in Xinjiang. Fuel processing, power generation, chemicals, non-ferrous, iron and steel industries mainly shown states of END and EC. On this basis, it is suggested that local governments should adjust the industrial structure, optimize energy consumption structure, and promote energy conservation and emission reduction to tap the potential of carbon emissions mitigation in key sectors.