Scholars in the field of environmental economics have extensively examined the relationship between foreign direct investment (FDI) and economic growth. However, they have often failed to consider the crucial roles played by technological innovation and financial development in determining environmental costs. The rapid economic growth and urbanization witnessed in BRICS countries have led to a substantial increase in energy demands, resulting in significant environmental degradation. This study aims to investigate the impact of financial development (including measures such as broad money, domestic credit to the private sector, FDI, and green technological innovation) on carbon emissions in BRICS countries using data from 2001 to 2023. The results of the study demonstrate a strong cross-sectional dependence among the countries in the panel. The Augmented Mean Group (AMG) estimator reveals a negative and statistically significant long-term relationship between broad money, FDI, green technological innovation, and CO2 emissions. On the other hand, domestic credit to the private sector shows a positive and significant association with carbon emissions. To determine the direction of causality, the study utilizes the Dumitrescu and Hurlin panel causality test. The findings indicate a non-directional long-term causality between financial development and CO2 emissions. However, a unidirectional causality is observed between green technological innovation and carbon emissions. Based on these findings, the study suggests that the development of industries, financial institutions, and technological innovation is crucial for attracting high-quality FDI in BRICS countries. However, it also highlights the significant contribution of these developments to environmental degradation, necessitating urgent policy responses.