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Grassland has great potential for carbon sequestration; however, the relationship between carbon storage (CS) and greenhouse gas (GHG) budget and their influencing factors in the natural restoration process in grassland mining areas are rarely studied. In this study, taking Zhalainuoer mining area in Inner Mongolia as an example, the subsidence soil for 1-, 2-, 5-, 10-, and 15-year and non-subsidence soil were selected as the research objects to explore the relationship between CS and the GHG budget and their influencing factors. The results show that there is a significant negative correlation between CS and the GHG budget. Soil organic carbon storage accounts for 99% of CS. CS is positively correlated with SOM and AP, and with the bacteria Entotheonellaeota. The GHG budget is mainly affected by CO2 emission, which is positively correlated with subsidence time, plant biomass, and coverage, negatively correlated with the bacteria Actinobacteriota and Deinococcota, and positively correlated with Cyanobacteria. In summary, soil plays a major role in storing carbon. Carbon sequestration is a physiological process produced by plants and organisms. Subsidence affects soil CS by changing soil properties and thus affecting its aboveground vegetation and soil microorganisms. This study investigates the changes in soil carbon storage following subsidence caused by mining activities. The findings contribute to our understanding of the impact of mining subsidence on soil CS and can inform the development of low-carbon remediation technologies. [ABSTRACT FROM AUTHOR]