The invention provides a coal combustion apparatus capable of separating carbon dioxide, which is mainly formed by connecting a fuel reactor, a primary cyclone separator, a dipleg and an air reactor in series; wherein the lower part of the fuel reactor is provided with a mixing chamber with large cross section, and the upper part thereof is provided with a lifting tube with small cross section; and the height of the lifting tube is over three times higher than that of the mixing chamber. The invention also provides a method using the coal combustion apparatus capable of separating the carbon dioxide to separate the carbon dioxide. The fuel reactor adopts the structure of a reactor with long residence time, internal circulation can be formed by granules, and the gas-solid turbulence is improved; the air reactor adopts a moving fluidized bed to ensure the operation to be stable, so that the heat can be evenly released; meanwhile, a heat exchanger is arranged inside the bed, so that coking caused by local overheating since a great deal of heat is released in a centralized way in oxidation reaction can be avoided. Furthermore, the fuel reactor and the air reactor run under the pressure, so that the equipment can be compact, the utilization efficiency of system energy is high, and the subsequent carbon dioxide compression energy consumption is reduced.