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This invention provides a negative carbon thermal circulation upgrading furnace and its application, relating to the field of industrial solid waste treatment technology. The upgrading furnace includes at least three assemblable unit modules, each comprising a furnace body, multiple horizontally inserted U-shaped pipes, an air inlet main pipe, and an exhaust main pipe. The furnace body has a rectangular cross-section, with opposing through holes on the front and rear walls. The U-shaped pipes, including U-shaped air inlet pipes and U-shaped air outlet pipes, are inserted into these through holes. The U-shaped air inlet pipes are connected to the air inlet main pipe, and the U-shaped air outlet pipes are connected to the exhaust main pipe. Based on this main body, flue gas is introduced or discharged through the horizontally inserted U-shaped pipes, enabling flexible control of material drying, internal combustion, reheating, and cooling within the furnace. This invention also provides applications of the upgrading furnace. Through modular furnace design and a high-efficiency flue gas circulation system, this invention achieves low-energy, high-value treatment of various solid wastes, ultimately achieving a negative carbon target.