ABSTRACT The European Union (EU) has set ambitious climate goals, aiming to become the first climate‐neutral continent by 2050, with a focus on achieving net‐zero emissions and advancing United Nations Sustainable Development Goal (SDG) 13. A key component of this transition is the role of green technological innovation, the deployment of clean energy solutions, the evolution of environmental policies, and the influence of international trade on sustainability. This study examines the impact of green technology innovation, renewable energy consumption, environmental tax, trade openness, and GDP on CO 2 emissions in 25 European countries, utilizing second‐generation econometric models and panel data from 1990 to 2019. The findings reveal a significant negative connection between green technology innovation, renewable energy, and CO 2 emissions, highlighting the crucial role of transitioning towards sustainable clean energy technologies. Conversely, environmental tax, trade openness, and GDP have a positive effect on CO 2 emissions, underscoring the urgency of reducing reliance on conventional energy and implementing accurate ecological policies. The study aligns these findings with the objectives of the Green European Deal, underscoring the need for policies that promote green innovation, renewable energy adoption, and effective environmental management.
Xu et al. (2026) studied this question.