Assessing the Contribution of Green Energy Transition, Technological Innovation, and Green Finance to Carbon Neutrality: Evidence from the BRICS Countries

Achieving carbon neutrality has become a central policy objective for emerging economies, particularly the BRICS countries—BRICS (Brazil, Russia, India, China, and South Africa)—which collectively account for a substantial share of global carbon emissions and energy consumption. The transition toward green energy, rapid technological innovation, and the expansion of green finance mechanisms are increasingly viewed as critical drivers of sustainable development and environmental improvement. However, empirical evidence integrating these three dimensions within a unified analytical framework for BRICS remains limited. This study assesses the contribution of green energy transition, technological innovation, and green finance to achieving carbon neutrality in BRICS over the period 1990–2024. The novelty of this research lies in its comprehensive modeling approach that simultaneously captures long-run dynamics, cross-sectional dependence, and heterogeneity among countries. Advanced panel econometric tech-niques, including second-generation unit root tests, panel cointegration analysis, and the pooled mean group ARDL model, are employed to ensure robust and reliable estimates. The findings reveal that green energy transition and technological innovation significantly reduce carbon emissions in both the short and long run, while green finance enhances environmental quality by facilitating low-carbon investments. Moreover, bidirectional causality is observed between green finance and technological innovation, indicating a reinforcing mechanism. Policy implications suggest that BRICS nations should strengthen green financial markets, promote clean energy technologies, and enhance regulatory frameworks to accelerate progress toward carbon neutrality. Coordinated regional cooperation and targeted innovation incentives are essential for sustainable and inclusive low-carbon growth.