The nexus of sustainability: investigating energy transition, green technological innovations, and financial development in mitigating carbon emissions in BRICS

Purpose From the perspective of global environmental stability, the BRICS’ position as the world's leading carbon emitter poses a serious threat. Therefore, it is essential to develop a distinct model that enables policymakers to formulate robust mitigation strategies and support emission sustainability and the achievement of the Sustainable Development Goals (SDGs). Hence, this study examines the correlation between renewable energy (RE), non-renewable energy (NRE), green technological innovations (GTI), financial development (FD), and carbon dioxide emissions (CO2e) in the BRICS regions. Design/methodology/approach This study examines the impact of RE, NRE, GTI, and FD on CO2e using novel econometric approaches, specifically the Cross-Sectional Augmented Autoregressive Distributed Lags (CSARDL) method and the Methods of Moments Quantile Regression (MMQR), from 1990 to 2020. Findings The results indicate that renewable energy adoption and green technological innovations significantly improve environmental quality in the BRICS economies, while reliance on non-renewable energy and certain dimensions of financial development contribute to environmental degradation. These findings emphasize the need for coordinated strategies that promote clean energy, green technologies, and sustainable financial practices to ensure environmental sustainability in the region. Originality/value This study contributes to the literature by exploring the specific factors that contribute to environmental sustainability in the BRICS economies. Existing studies have examined various factors responsible for sustainability, such as urbanization, economic development, industrialization, and so on. However, researchers have largely ignored the importance of integrating energy transition, green technological innovations, and financial development with climate change, especially in the BRICS. In addition, in today's era of increasing climate challenges and rapid technological change, sustainable finance integrates economic expansion with environmental sustainability, while a well-functioning financial system can accelerate CO2e reductions by channeling capital into R&D, easing financing constraints, and enhancing energy-use efficiency—thereby reinforcing the structural foundations for a socially sustainable future. In conclusion, this study suggests that practical policy implications include advancing clean energy initiatives and investing in technological innovation to mitigate CO2e and achieve net-zero emissions in the BRICS economies.