This study examines the relationship between economic growth, energy consumption, financial development, trade openness, and CO₂ emissions in Indonesia from 1975Q1 to 2011Q4. Using the Zivot-Andrews structural break unit root test and ARDL bounds testing approach, the study finds that the variables are cointegrated, indicating a long-run relationship. The VECM Granger causality analysis reveals bidirectional causality between energy consumption and CO₂ emissions, as well as between economic growth and CO₂ emissions. Financial development is found to Granger cause CO₂ emissions, while trade openness is negatively linked to CO₂ emissions. The study also finds that financial development and trade openness can improve environmental quality. The results suggest that energy efficiency and financial development are crucial for controlling environmental degradation. The study contributes to the literature by applying the Zivot-Andrews test, ARDL bounds testing, and VECM Granger causality approach, as well as the innovative accounting approach (IAA) to test the robustness of causality analysis. The findings highlight the importance of energy efficiency and financial development in mitigating environmental degradation in Indonesia.This study examines the relationship between economic growth, energy consumption, financial development, trade openness, and CO₂ emissions in Indonesia from 1975Q1 to 2011Q4. Using the Zivot-Andrews structural break unit root test and ARDL bounds testing approach, the study finds that the variables are cointegrated, indicating a long-run relationship. The VECM Granger causality analysis reveals bidirectional causality between energy consumption and CO₂ emissions, as well as between economic growth and CO₂ emissions. Financial development is found to Granger cause CO₂ emissions, while trade openness is negatively linked to CO₂ emissions. The study also finds that financial development and trade openness can improve environmental quality. The results suggest that energy efficiency and financial development are crucial for controlling environmental degradation. The study contributes to the literature by applying the Zivot-Andrews test, ARDL bounds testing, and VECM Granger causality approach, as well as the innovative accounting approach (IAA) to test the robustness of causality analysis. The findings highlight the importance of energy efficiency and financial development in mitigating environmental degradation in Indonesia.