Carbon dioxide is a major anthropogenic greenhouse gas produced primarily from combustion of fossil fuels (coal, natural gas and oil), automobile emission and from industrial exhausts that has posed a huge danger for the environment in recent times. About 81 % of the overall greenhouse gases production is contributed by CO₂. Electroreduction of CO₂ into useful fuels has gained huge attention in the past few years. The advantage of polymer electrolyte membranes (PEM) is already well recognized in fuel cells. The reverse action of fuel cell can be employed for protonation of CO₂ to fuels, which has an advantage in prevention of products from re-oxidation. Several studies on PEM cell based electrochemical conversion of CO₂ into useful hydrocarbons have been reported. In this particular work, we aim to convert CO₂ into some useful nontoxic hydrocarbon using proton exchange membrane fuel cell by selectively functionalizing the cathode catalyst support material. Room temperature ionic liquids exhibit some significant properties, which owe to their popularity such as low vapour pressure, high chemical and thermal stability, tunable properties, good ionic conductivity and high CO₂ solubility. Due to their negligible vapour pressure and nonflamability, they are often called “green solvents”. The cathode catalyst support used in this present work is iron carbide encapsulated nitrogen doped carbon nanotubes, which is anticipated to increase both the CO₂ reduction and catalytic activity of cathode electrode. Further, surface functionalization of the cathode catalyst support with ionic liquid moieties and dispersion of Pt catalytic nanoparticles were performed to use in a Proton Exchange Membrane (PEM) CO₂ conversion cell. The ionic functionalized sample shows better CO₂ reduction than the pure support material due to improved interaction of the ionic functionalized catalyst with CO₂ molecules and also facilitates the reaction kinetics due to the presence of high electrical conductivity and preferable catalytic sites. Moreover, Fe containing precursors also participate in CO₂ electroreduction. The present investigation describes the synergistic effect of Fe as well as nitrogen doped ionic functionalized CNT for electrochemical reduction of CO₂.