Synchronising Sustainability: Do Technological Advancement, Financial Development and Renewable Energy Matter in Finland?

ABSTRACT Rising carbon dioxide emissions remain a major environmental challenge despite Finland's strong commitment to achieving carbon neutrality, creating concerns regarding the effectiveness of economic and structural drivers of environmental sustainability. This study investigates how foreign direct investment, technological advancement, renewable energy consumption, globalisation and economic growth influence CO 2 emissions in Finland over the period 1990Q1–2024Q4. To capture time‐varying and distribution‐dependent dynamics often overlooked by conventional approaches, the study employs wavelet power spectrum, wavelet coherence and wavelet quantile cointegration techniques. The findings reveal that renewable energy consumption and technological advancement significantly reduce emissions, particularly over medium‐ and long‐term horizons, whereas economic growth, globalisation and foreign direct investment exert stronger short‐run emission pressures under high‐emission regimes. The results highlight asymmetric and horizon‐dependent relationships among the variables. From a policy perspective, strengthening renewable energy expansion, promoting green technological innovation and attracting environmentally sustainable investment are essential for supporting Finland's transition towards long‐term environmental sustainability and carbon neutrality goals.