In recent years, Industry 4.0 (henceforth I4.0) has garnered considerable interest from various economic stakeholders, including companies, consumers, and government policymakers. Developed nations, in particular, have embraced the concept of I4.0, anticipating notable advancements in industrial processes. This vision holds the potential to bring about significant enhancements to industries ^[1].

According to the World Economic Forum report, I4.0 is projected to have a significant and rapid impact on global industries, leading to systematic and extensive transformations. To embrace the opportunities of the fourth industrial revolution, many countries have implemented policies and regulations targeting energy conservation, sustainable development, and industrial transition. As I4.0 ushers in the next phase of industrial competition, it becomes imperative for nations to formulate development strategies that can adapt to the incoming opportunities and challenges ^[2]. I4.0 is closely linked to the revolution in information and communication technology (ICT). As industrial operations become smarter, this transformation is facilitated by the integration of technologies such as the Internet of Services (IoS) and the Internet of Things (IoT). These interconnected networks enable industries to establish a seamless supply chain and facilitate intelligent industrial operations throughout the entire process ^[3].

The I4.0 revolution and the mentioned technologies also impose substantial energy consumption requirements ^[4]. Consequently, industries and policies focusing on I4.0 need to urgently reconsider their energy strategies to foster an environmentally friendly transformation towards sustainable production within this framework. In this regard, renewable energy (RE) assumes a critical part in paving the way for its future. Emphasizing renewables is essential for addressing energy challenges effectively [4,5]^[4][5]. The share of RE in total energy production is increasing; however, it is criticized that this trend is not adequate to meet global targets stated in the Sustainable Development Goals ^[6]. A more effective shift to renewable energies is decisive to mitigate the environmental impacts and to reverse climate change. Furthermore, shifting to RE sources holds significant potential for alleviating the numerous issues accompanying conventional energy use, together with environmental and health-associated problems. In terms of the theoretical and technical contributions of I4.0 to RE systems and digital industries, there are three notable capabilities. Firstly, it enhances transparency by providing real-time information on the energy system’s status. Secondly, it offers added flexibility to accommodate RE systems effectively. Lastly, it boosts energy efficiency by reducing overall energy consumption ^[7].

Over the past decade, the G20 countries have demonstrated significant commitment and adherence to achieving I4.0 transformation officially announced after the Platform of Industrie 4.0 (PI4.0) and related consortiums. Germany, in particular, has played a leading role in I4.0 transformation after hosting a meeting that set forth the agenda for I4.0 transformation in 2016 ^[8]. The transformation to I4.0 necessitated digital transformation and pooling expertise to achieve an I4.0 network. For this purpose, two organizations are put forth, namely the “Platform Industrie 4.0” (PI4.0) and “Industrial Internet Consortium” (IIC) established to function closely in co-operation ^[8]. PI4.0 project serves as the core network in Germany to enhance and manage digital transformation in I4.0; and PI4.0 of Germany aims for collaboration between many institutions, including not only the industries but academics, trade unions, and political institutions. It also develops and co-ordinates information and networking services to promote I4.0 solutions among companies and facilitate their deployment on site ^[9]. IIC is an open membership organization with global representation, focusing on accelerating the adaptation and development of interconnected machines, relevant technological advancements coupled with intelligent analytics, and human–machine collaboration ^[8]. The consortium, founded in 2014, catalyzes and directs and co-ordinates IoT technologies and digital transformation.

The I4.0 platform has been extended to encompass all G20 countries, aiming to accelerate and generalize the I4.0 to G20 countries. In the PI4.0 held in Germany in Berlin in March 2017, representatives from G20 shared their commitment to collaboration of politics, business, and civil society to network and share I4.0 initiatives. The collaboration for and achievement of I4.0 revolution is based on different pillars for G20 countries. These include the share of technological advancement, the digitalization of manufacturing practices within I4.0, and international co-operation to achieve I4.0 in G20 ^[9]. These pillars also constitute an agenda to achieve promotion of digitalization with I4.0 concepts such as “Digital Twin”, sharing internet applications technologies of I4.0 in industries ^[10], advancing manufacturing digitization within the G20 countries through international co-operation, and standardization efforts for I4.0 ^[11]. It is clear that G20 will play a crucial role in the future of I4.0 revolution and transformation of production structures in the industries [8,9,10,11,12]^{[8][9][10][11][12]}.

2. I4.0 and Renewable Energy Production

There is also bidirectional causality between renewable energy output and ICT goods and service exports and between economic growth and industrial structure. There is also a unidirectional causality from industrial structure, openness, and financial development to renewable energy output. In the context of our results, Granger causality between I4.0, renewable energy production, and economic growth determined important policy results. I4.0 has a significant impact on renewable energy production. I4 components can provide efficiency in the production and distribution of renewable energy. G20 countries have a significant share in renewable energy production. Except for Germany and Saudi Arabia, most countries rely heavily on hydropower as the dominant source of renewable energy capacity. Nonetheless, non-hydro renewable sources, particularly wind and solar energy, have witnessed a rapid surge in several nations. Germany stands out with the largest proportion of non-hydro renewables in its energy mix, constituting over 26% of its power generation. In terms of sheer capacity, China takes the lead with nearly 200 GW of total installed non-hydro renewable capacity [58,59]^[13][14]. Conversely, the integration of non-hydro renewables remains in its early stages in Russia and Saudi Arabia. Brazil has historically leaned on hydropower for electricity generation and boasts a substantial utilization of biofuels in its transportation sector. The nation’s strong backing of ethanol as an alternative fuel has positioned it as a global frontrunner in this domain. Renewable promotion has been a consistent theme in the energy strategies of pioneers such as Brazil and Germany. Reflecting their domestic energy trajectories, Brazil champions biofuels internationally, while Germany fervently advocates for wind and solar energy advancements.  As renewable energies gain worldwide traction, the desire to promote their expansion is gaining traction in other countries, including France and the United States [61]^[15]. Reduced usage of nuclear energy is a key driver of renewable energy expansion in France and Germany. In Germany, this has been combined with ambitions to become a leader in a burgeoning renewable industry, an aim shared by countries such as China and the United States. In Argentina, for example, investments in renewables are supported by support for the country’s burgeoning shale gas industry. The availability of resources and low costs have always been important factors in the use of hydropower. Falling costs have also fueled the growth of solar and wind power. Wind energy, for example, has grown in popularity in Brazil [61]^[15]. In the effect of I4, the expansion of renewable energies and improvements in energy efficiency are key pillars of a decarbonized global energy supply. The role of energy efficiency is shown to be an almost 1 to 1 reduction in environmental degradation [62]^[16] and is crucial for the energy sector. ICT encompasses a spectrum of technologies associated with the storage, retrieval, transmission, and manipulation of digital data. This encompasses computers, networks, software, and telecommunications. In the context of I4.0, ICT serves as the cornerstone for transforming the vision into reality. It establishes the framework for interconnecting diverse devices, sensors, and systems within manufacturing environments, facilitating the seamless exchange of data and enabling automation. The amalgamation of ICT within I4.0 bestows the capacity for real-time supervision and regulation of manufacturing processes, anticipatory maintenance of equipment, data-informed decision making, and the conception of digital twins—virtual renditions of tangible assets. These functionalities are pivotal in attaining the envisaged efficiency enhancements and innovative breakthroughs promised by I4.0. Another link is for energy storage, because I4.0 technologies can help with energy storage and distribution optimization. Sensors and analytics can aid in the prediction and prevention of equipment failures in renewable energy systems, extending their life and decreasing downtime. The integration of I4.0 and renewable energy helps to produce smart networks, energy-efficient cities, and long-term energy solutions. Furthermore, integrating I4.0 and renewable energy necessitates innovation and collaboration among numerous stakeholders, such as governments, industries, researchers, and technology providers. G20 countries frequently collaborate to exchange best practices and set common standards for the implementation of these technologies. G20 governments play a critical role in influencing the link between I4.0 and renewable energy. They can encourage the use of both technologies by implementing supportive policies such as tax breaks, research funding, and renewable energy objectives. In G20 nations, I4.0 can play a role in achieving sustainability goals. G20 countries can explore how these technologies can be utilized to reduce environmental impact and promote circular economy principles. In the context of economic policies, there is a strong link between I4.0 technology and renewable energy in the policy formulation process. Integration with I4.0 has the potential to have a substantial influence on the renewable energy sector. Smart energy management, for example, is critical because IoT sensors and data analytics help optimize the operation and maintenance of renewable energy systems, increasing their efficiency and reliability [7,21]^[7][17]. The relationship between I4.0 technologies and renewable energy is critical for distributed energy systems. Decentralized and distributed generating is common in renewable energy systems. I4.0 makes it easier to manage these systems by enabling communication and collaboration across numerous components. Further, industrial development is expected to couple with economic growth and urbanization, which have strong effects on environmental degradation [37]^[18]. Renewable energy is shown to have strong role on reducing environmental degradation and helping on achieving sustainable economic development. Such findings are in line with the literature suggesting positive association between renewable energy and economic growth [63]^[19]. According to ourthe findings, policies should focus not only on renewable energy investments, but also on eco-friendly and green I4.0 technology investments. Further, findings of the paper underline the importance of financial development, institutional structure, and trade openness in the above-mentioned relation. Nevertheless, findings indicate positive effects of trade openness on renewable energy and economic growth. As ourthe results confirm causal relations between trade openness and emissions, increasing the share of renewable energy production rapidly is vital for sustainability. Such findings are in line with renewable energy and current account balance relations ^[6].