This research paper aims to explore the role of FDI inflows and stock market development on the promotion of renewable energy consumption. Further, study investigates the effect of renewable energy consumption on CO2 emissions and economic output across a panel of Brazil, China, India and South Africa. Study utilizes annual data from 1990 to 2012 and employs various robust panel econometric techniques. The findings confirm that both FDI inflows and stock market development play an important role in promoting renewable energy consumption. The results also reveal that renewable energy consumption helps to mitigate the growth of CO2 emissions and promotes economic development.