This study investigates the impact of green investments, economic growth, and financial development on environmental pollution in the G-7 countries using annual panel data from 1997 to 2021. The panel NARDL (Non-linear Autoregressive Distributed Lag) model is employed to address methodological issues associated with panel data, such as heterogeneity and cross-sectional dependence. The results indicate that both positive and negative shocks in green investments have a significant and positive association with environmental pollution in the G-7 nations. Additionally, positive shocks in financial development have a positive and significant effect on environmental pollution, while negative shocks have an insignificant relationship. Positive shocks in gross domestic product (GDP) growth and negative shocks in economic growth also show a significant and positive link with environmental pollution. The study concludes that green investments reduce environmental pollution by lowering carbon dioxide emissions over both the short and long term. It recommends increasing green investment expenditures to reduce environmental pollution in the G-7 nations and improving advancements in the financial sector to achieve sustainable development goals.This study investigates the impact of green investments, economic growth, and financial development on environmental pollution in the G-7 countries using annual panel data from 1997 to 2021. The panel NARDL (Non-linear Autoregressive Distributed Lag) model is employed to address methodological issues associated with panel data, such as heterogeneity and cross-sectional dependence. The results indicate that both positive and negative shocks in green investments have a significant and positive association with environmental pollution in the G-7 nations. Additionally, positive shocks in financial development have a positive and significant effect on environmental pollution, while negative shocks have an insignificant relationship. Positive shocks in gross domestic product (GDP) growth and negative shocks in economic growth also show a significant and positive link with environmental pollution. The study concludes that green investments reduce environmental pollution by lowering carbon dioxide emissions over both the short and long term. It recommends increasing green investment expenditures to reduce environmental pollution in the G-7 nations and improving advancements in the financial sector to achieve sustainable development goals.