<p>This study examines the environmental implications of urbanization (URB), renewable energy (RE), industrialization (IND), and economic growth in G7 economies from 1991 to 2022, focusing primarily on carbon dioxide CO₂ emissions. Utilizing the Panel Autoregressive Distributed Lag (PARDL) model, the research aims to untangle the intricate relationships between these factors and demonstrate a thorough grasp of their interactions across times. Findings reveal a quantifiable impact of renewable energy (RE), where a 1% increase in RE usage leads to a 0.032% reduction in CO2 emissions in the short term and a further 0.084% reduction in the long term. In case of IND, 1 percent increase in IND brings 0.0474% rise in (CO2) emission, but in long run, 1% rise in IND declines (CO₂) emissions by 0.0994%. Results further reveals that a 1% increase in URB is associated 1.53 percent surge in (CO2) emission in short run. In long run, 1% rise in URB causing (CO₂) emissions intensify by 1.26%. Further, the study uncovers a two-way causation between urbanization and CO₂ emissions. Additionally, RE exhibits a one-way causal impact, suggesting its potential for significant CO₂ reduction. Similarly, a bidirectional causality in industrialization and CO₂ emissions is identified. Although, economic growth has a one-way causal effect on CO2 emission. The profound implications of these findings highlight the urgency of addressing environmental challenges and advocating for strategic integration of RE to enhance energy security and foster sustainability in G7 nations.</p>