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Cutting tools are extensively used in subtractive manufacturing systems for achieving the desired products. The advancement of cutting tool technology promotes the development of efficient and green machining. However, as one of the auxiliary consumptive materials, cutting tools have a crucial impact on the sustainability of machining systems. Thus, the development of sustainability urgently requires characterizing the impacts of cutting tools. This paper investigates the environmental impacts of cutting tools from the life cycle aspect based on the material and energy consumption during the material extraction, manufacturing, use, and recycling of cutting tools. Carbon emission is applied to measure the impacts of cutting tools on the sustainability of the machining system. Then a life cycle carbon efficiency approach based on the service life of the cutting tool is presented to characterize the life cycle carbon emission characteristics of cutting tools. A gear hobbing system with five kinds of hobs was introduced as a case study to characterize the life cycle carbon emissions and efficiency of hobs. It indicates that substrate and coating material type, manufacturing process, coating method, and regrinding times all influence the carbon emissions and efficiency of hobs to different extents. A high-speed dry-cutting hob exhibits excellent carbon efficiency in addition to carbon emissions. [ABSTRACT FROM AUTHOR]