The dynamics between renewable energy consumption, economic growth, financial development, and CO2 emissions are pivotal in fostering sustainable development in India. As the country strives to balance economic growth with environmental sustainability, it becomes essential to measure and analyse the interconnections between these variables. The study examines the relationship between these variables to promote sustainable development in India. To achieve this, the study employs time series data from secondary sources and utilizes the autoregressive distributed lag (ARDL) model, selected based on the stationarity of the data series. The ARDL method is particularly well-suited for distinguishing between short-term and long-term effects, offering a comprehensive analysis of how these variables interact over time. In addition, the study incorporates stability tests, such as CUSUM squares, and diagnostic tests, like the Wald and LM tests, to ensure the reliability and robustness of the findings. The results reveal that renewable energy consumption, economic growth, financial development, and CO2 emissions have significant long-term effects. In the short run, financial development and CO2 emissions also exhibit notable impacts, whereas the immediate effects of economic growth on renewable energy consumption are less pronounced. This indicates that while economic growth is crucial, its short-term influence on renewable energy consumption is overshadowed by the impacts of financial development and CO2 emissions. The practical implications of this study are significant for policymakers and financial institutions in India. It underscores the importance of a balanced approach to financial development that supports long-term renewable energy projects. Policymakers must ensure that financial growth does not lead to inefficiencies that undermine renewable energy projects.