In the modern world, the oil and gas sector play an important role in meeting global energy demand, maintaining macroeconomic stability with energy resources in many countries, conducting foreign trade and increasing budget revenues. It has social impacts in terms of financing infrastructure projects by the state based on oil and gas revenues, providing employment, and implementing social support measures. Moreover, the oil sector leads to a disruption of the ecological balance and acts as one of the main causes of global warming and climate change. The main causes of carbon dioxide emissions in oil-rich countries are the extraction of oil and natural gas and the burning of fossil fuels such as oil and natural gas. As oil production and export are the main source of income for the Azerbaijani economy, this sector has a high market share in the formation of macroeconomic indicators. Since the use of renewable energy sources is unsatisfactory, the majority of energy needs are obtained from the oil and gas sector. The article comparatively studies the volume of carbon emissions released into the atmosphere as a result of fuel production and consumption in the world and in Azerbaijan. Based on statistical data covering the years 1990–2023, the long-term and short-term effects of oil and gas production, energy use and renewable energy consumption on CO2 emissions were examined using the ARDL model. Tests were conducted to verify the adequacy of the results obtained from the model.