Photosynthetic mitigation of CO2 through microalgae is gaining great importance due to its higher photosynthetic ability compared to plants, and the biomass can be commercially exploited for various applications. CO2 fixation capability of the newly isolated freshwater microalgae Scenedesmus bajacalifornicus BBKLP-07 was investigated using a 1-l photobioreactor. The cultivation was carried at varying concentration of CO2 ranging from 5 to 25%, and the temperature and light intensities were kept constant. A maximum CO2 fixation rate was observed at 15% CO2 concentration. Characteristic growth parameters such as biomass productivity, specific growth rate, and maximum biomass yield, and biochemical parameters such as carbohydrate, protein, lipid, chlorophyll, and carotenoid were determined and discussed. It was observed that the effect of CO2 concentration on growth and biochemical composition was quite significant. The maximum biomass productivity was 0.061 ± 0.0007 g/l/day, and the rate of CO2 fixation was 0.12 ± 0.002 g/l/day at 15% CO2 concentration. The carbohydrate and lipid content were maximum at 25% CO2 with 26.19 and 25.81% dry cell weight whereas protein, chlorophyll, and carotenoid contents were 32.89% dry cell weight, 25.07 μg/ml and 6.15 μg/ml respectively at 15% CO2 concentration.