Combating global climate change has long since become mainstream in most developed countries. The problem of global warming caused by carbon dioxide (CO₂) emissions was reflected in 2015 when 196 countries joined the consensus document “Paris Agreement”, which implements various measures to reduce CO₂ emissions from 2020 ^[1][2][1,2]. Global warming is primarily associated with increased concentration of CO₂ in the environment due to burning fossil natural resources (oil, coal, and gas). In recent decades, the scientific community has been actively developing new and improving current practices for implementing the 2030 Agenda for Sustainable Development. Previous studies have shown that using a wide range of approaches and tools stimulates the implementation of sustainable management practices. In particular, it is adequate to work in the following fields and areas: study of the impact of regulatory and direct restrictions on the pollution dynamics [3]; assessment of the influence of indicators of the national economy on the environmental protection processes ^[4][5][4,5]; study of prerequisites for improving the energy security of countries ^[6][7][6,7]; introduction of green financial instruments [8]; application of specific restrictions on the development of economic sectors of countries [9]; development of new and improvement of existing energy technologies, use of intelligent networks ^[10][11][12][10,11,12]; analysis of green taxation ^[13][14][13,14]; research of social, economic, technological, ecological, and social scenarios of the sustainable growth ^[15][16][15,16]; implementation of environmental management ^[17][18][17,18]; research on the development of alternative energy ^[19][20][21][19,20,21]; analysis of green competitiveness at the level of countries and individual companies ^[22][23][22,23]; study of the features of the functioning of the circular economy ^[24][25][24,25]; assessment of energy gaps and efficiency of the energy sector ^[26][27][26,27].

The acceleration of relevant processes is followed in the global business environment. According to Bloomberg [28], in 2020, USD 501.5 billion was invested in the transition technologies of the energy decarbonization of the economy in the United States, which is a record amount compared to the previous 10-year period when funding was USD 303.5 billion in renewable sources energy In addition, the dynamics of the implementation of decarbonization market instruments by countries and the increase in the share of renewable energy production worldwide indicate a steady trend of their spread. Thus, the percentage of RES in the energy balance in 2021 is Sweden—69%, Denmark—78%, Latvia—63%, Slovenia—33%, Estonia—47%, and Germany—41% ^[29][30][31][29,30,31]. Implementing alternative energy has several indisputable advantages: inexhaustibility of resources, safety for the environment, economic benefit, autonomy, a long period of operation, formation of a positive image, stability, and the possibility of earning. However, not all countries have actively joined the implementation of alternative energy. Thus, it is quite essential to determine how introducing renewable energy sources affects the reduction of CO₂ emissions, which in the future can become an appropriate stimulus for activating the decarbonization processes of countries.

2. Renewable Energy Production and CO2 Emissions

The authors ^[32][39] used the Fuzzy DEMATEL model for the assessment of CO₂ emission and for outlining the significance of global economy decarbonization for seven emerging countries. They concluded that carbon emissions are a distressing global environmental problem and result from accelerating fossil fuel use. At the same time, renewable energy implementation can be an important method for the decarbonization of energy sectors and economies. At the same time, the scholars ^[33][40] justified the implementation of recent fiscal instruments, such as green bonds, for supporting investment processes in renewable energy development. The calculations for China’s economy significantly facilitate green investment and reduce CO₂ pollution. They also accented the necessity of renewable expansion for China’s economy and the global economic sector for stimulating SDG 2030 implementation. Barbar et al. ^[34][41] underscored that the success of decarbonization efforts depends directly on alternative technology development. Based on the scenario approach, they assessed electric vehicles and a power systems implementation. Adebayo et al. ^[35][42] empirically justified the interconnection between CO₂ emissions and implementing fiscal tools for investing in sustainable energy technologies. They noticed that green investments could reduce CO₂ emissions while the acceleration of economic development intensifies it. In the frame of implementation of SDG 2030, the scholars in ^[36][43] provided a systematic analysis of the nexus between clean energy spreading, environmental sustainability actions, and ecological quality. The study realized that the E-7 economies point to the interdependence of financial and renewables development and environmental pollution. Tang et al. ^[37][44] showed that an effective regulatory system and well-developed state institutions reduce the negative environmental impacts. Using the CS-ARDL approach, they described the moderate economic development in Asia with regard to carbon dioxide reduction. Rogala et al. ^[38][45] chose Polish biogas potential as a system that can stabilize alternative energy. They also emphasized its core significance in decreasing CO₂ emissions. The results of calculations for Malaysia proved that promoting renewable energy initiatives can reduce absolute carbon emissions by 20 per cent. The authors emphasized the necessity to implement several state incentives for the green energy sector, particularly the decarbonization of electricity production. Scientists in ^[39][46] studied the impact of renewable energy production on developing the circular economy for 193 countries. Using panel data with various effects, they proved that alternative electricity production provides so-called adjusted savings in the form of reduced forest depletion. At the same time, the study ^[40][47] examined the interconnection between 25 EU Member States’ economic growth, carbon emissions, total energy consumption, and investments indicators. They proved such interdependences’ causality and outlined the positive correlation between GDP growth, pollution, and energy consumption increase. The authors ^[41][48] examined the United States’ second-largest CO₂-emitting economy as it plans to reduce its environmental challenges and contribute to achieving the Sustainable Development Goals 2030. They explored the transition to renewable energy and environmental innovations that will accelerate the decarbonization of the US economy. Using the ARDL approach, the authors illustrated the co-integration of the investigated variables in the long-term and short-term perspective and also emphasized that the transition to renewable energy reduces carbon emissions. Zhang ^[42][49] investigated the interconnection between energy transition processes and implementing environmental innovations with environmental sustainability. The article examined the ten most populous Asian countries in the context of the impact of renewable energy production and consumption, the development of ecological innovations, and the development of scientific research on the scale of CO₂ pollution. The results showed that industrialization processes significantly increase CO₂ emissions. Interesting is the study of the authors in ^[43][50], who the development of the stock market as a driver of the promotion of renewable energy on CO₂ emissions. Empirical findings indicate that foreign direct investment is an essential financial instrument stimulating energy conservation. The authors ^[44][51] examined the asymmetric and long-term effects of the UK energy sector’s impact on environmental degradation. Using the nonlinear autoregressive distribution model, they evaluated energy efficiency change scenarios. The study results indicated that the increase in productivity in the energy sector and introducing renewable energy sources contributed to reducing carbon emissions, but there is a gap in the scientific approaches to investigate the interconnection between the development of renewable energy production in countries and the level of carbon emissions.