<p>In the last two decades, Group of 20 (G20) Nations assumed substantial economic growth backed by rising environmental distress concerning the financial, health and future production requirements. To plan for accommodating the rising production demand and to address emission problem, the nations shall exercise restraint and build Financial, Industrial and investment policies to navigate a sustainable and greener future. Our study explores the dynamic connect between key economic variables like GDP growth, FDI, globalization, public debt, and capital creation on resulting CO₂ emissions, using panel data of 1990–2022 from G20 nations. This study employs a robust econometric framework, including Fixed Effects, Robust Regression, Robust Standard Errors, Panel Corrected Standard Errors (PCSE), and panel co-integration tests, to ensure reliable inference. Our findings show that foreign direct investment (FDI) and capital formation increase CO₂ emissions, indicating environmental trade-offs and the extent of Public debt reduces emissions, suggesting fiscal constraints or green investments. Renewable energy consumption increases emissions due to high-emission sources. GDP growth doesn't directly impact emissions. Our findings stresses the need for more targeted policies, including stricter environmental standards for FDI, a shift towards low-emission renewable energy, and alignment of capital investment with sustainability goals.</p>