<p>This study examines the impact of climate policy stringency, economic factors, and political stability on environmental performance in BRICS countries. The study also examines the moderating effect of political stability on the relationship between the independent and the dependent variables. Using panel data (2000–2020), we apply the two-step System Generalized Method of Moments (GMM) estimator to address endogeneity and dynamic panel bias. GMM is preferred as it efficiently handles lagged dependent variables and mitigates weak instrument bias by combining lagged levels and differences. The key findings reveal that stringent climate policies and a higher share of renewable energy significantly reduce CO₂ emissions, while GDP per capita, industrial value added, and energy intensity exacerbate environmental degradation. Political stability moderates these relationships, enhancing the effectiveness of climate policies and renewable energy adoption but also reinforcing emission-intensive economic activities. The study highlights the importance of developing integrated policies that balance economic growth, energy transition, and institutional stability to achieve sustainable development in BRICS nations.</p>