<p>The need to fight the adverse effects of climate change is becoming a challenge for humanity. Technology innovation is considered an important factor to reach this goal. Various research are focused on the relationship between technology innovation and environmental sustainability. However, the pathways through which technological innovation leads to environmental sustainability are not fully identified. Therefore, we prolong the current literature review by explicitly integrating some transmission channels as mitigating factors in the mentioned relationship. For this, we utilize panel cointegration methods in the context of the MENA region, between 1990 and 2019. The direct analysis shows that technological innovation as well as financial development factors are incapable of stimulating CO2 emissions, against a negative effect resulting from foreign direct investments, energy consumption and trade. Furthermore, the mediation analysis shows that technological innovation has an indirect beneficial influence on environmental quality through its impact on energy consumption, financial development and foreign direct investment. Lastly, the outcome indicates the rejection of the EKC hypothesis indicating the absence of a quadratic relationship between GDP and CO2 emissions. Hence, policymakers should not only develop financial and technological systems but also develop more technological goods traded and enhance renewable energy use.</p>