This study investigates the relationship between financial efficiency, digital economy growth, and carbon dioxide emissions in BRICS countries (Brazil, Russia, India, China, and South Africa) from 1990 to 2021. The research finds that financial development, technological innovation, and foreign direct investment have a negative and statistically significant long-run association with CO₂ emissions, while economic growth, technological innovation, industrialization, and energy use have positive and statistically significant associations with carbon emissions. The study also identifies a bidirectional long-run causal relationship between economic growth, digital economy growth, financial efficiency, CO₂ emissions, industrialization, technological innovation, foreign direct investment, and inflation. A unidirectional causal relationship is observed between foreign direct investment and CO₂ emissions. The study recommends that BRICS countries should enhance their industries, financial institutions, and technological innovation to attract high-quality foreign direct investment and reduce carbon emissions. Additionally, the study suggests that BRICS countries need immediate legislative solutions to address the environmental damage caused by industrialization. The findings indicate that financial efficiency and digital economy growth have a significant and positive impact on CO₂ emissions, and that technological innovation can help reduce carbon emissions. The study concludes that financial development significantly affects CO₂ emissions and that low-carbon policy makers should take this relationship into account. The study also highlights the importance of balancing economic growth with the development of the digital economy and the need for policies that promote sustainable development and reduce carbon emissions.This study investigates the relationship between financial efficiency, digital economy growth, and carbon dioxide emissions in BRICS countries (Brazil, Russia, India, China, and South Africa) from 1990 to 2021. The research finds that financial development, technological innovation, and foreign direct investment have a negative and statistically significant long-run association with CO₂ emissions, while economic growth, technological innovation, industrialization, and energy use have positive and statistically significant associations with carbon emissions. The study also identifies a bidirectional long-run causal relationship between economic growth, digital economy growth, financial efficiency, CO₂ emissions, industrialization, technological innovation, foreign direct investment, and inflation. A unidirectional causal relationship is observed between foreign direct investment and CO₂ emissions. The study recommends that BRICS countries should enhance their industries, financial institutions, and technological innovation to attract high-quality foreign direct investment and reduce carbon emissions. Additionally, the study suggests that BRICS countries need immediate legislative solutions to address the environmental damage caused by industrialization. The findings indicate that financial efficiency and digital economy growth have a significant and positive impact on CO₂ emissions, and that technological innovation can help reduce carbon emissions. The study concludes that financial development significantly affects CO₂ emissions and that low-carbon policy makers should take this relationship into account. The study also highlights the importance of balancing economic growth with the development of the digital economy and the need for policies that promote sustainable development and reduce carbon emissions.