Aqueous-phase reforming of methanol (APRM) is an important method for H2 production, widely used in energy fields like polymer electrolyte membrane fuel cells (PEMFCs). However, traditional noble metal catalysts, being expensive and vulnerable to CO poisoning, restrict their practical application. Therefore, developing robust non-noble metal catalysts for efficient and sustainable H2 production with low CO levels in APRM at low temperatures is highly significant. In this study, a novel approach was employed to synthesize carbon-encapsulated Cu catalyst via controlled pyrolysis, leading to Cu@CA-Val catalyst with excellent low-temperature catalytic activity. The optimal Cu@CA-Val-300 catalyst exhibited a high hydrogen production rate of 0.2–27.0 μmolH2/gcat/s over a wide temperature of 135–180 °C (base-free), surpassing the most Cu-based and Pt-based catalysts. The Cu@CA-Val-300 catalyst exhibited exceptional hydrothermal stability during continuous operation in a fixed reactor for 200 h. Efficient H2 production was attributed to good wettability, enabling the diffusion of CH3OH and H2O molecules into Cu+/Cu0 sites for activation, with CO being suppressed and transformed through the formate formation.