CO2
emissions stand for a global challenge due to their cross-border nature, contributing substantially to environmental degradation. Since the Industrial
Revolution, affluent nations have accelerated economic growth, worsening this issue. However, this study examines the causal links between
energy consumption, FDI, urbanization, and carbon emissions in Somalia from 1991 to 2020. The ARDL bounds test is used as a suitable method to
estimate the long-run co-integration among the study’s variables. The findings show that in the long run, energy consumption, FDI, and
urbanization have a positive effect on CO2
emissions in Somalia. Additionally, economic growth contributes to carbon emissions, while trade
openness helps reduce environmental pollution in the long run. Moreover, the study applied Granger causality to find out the directions of these relationships, revealing bidirectional causal links between economic growth and carbon emissions, and between urbanization and FDI. It also found unidirectional causality from carbon emissions to energy consumption, from FDI to carbon emissions, and from urbanization to CO2 emissions. The study recommended that Somali government must reconsider its energy policy to promote greener energy. Additionally, Somalia should increase
investment in RandD for energy efficiency and renewable energy to minimize the carbon emissions resulting from FDI.