DETERMINAN DEGRADASI LINGKUNGAN DALAM UPAYA MENCAPAI NET ZERO EMISSIONS DI NEGARA G20NIM.: 24208011030Alfaina Zia InayatiauthorThis study aims to analyze the determinants of environmental degradation in the efforts to achieve Net Zero Emissions in G20 countries. Environmental degradation is proxied by carbon emissions per capita, while the independent variables include economic growth, industrialization, foreign direct investment (FDI), green technological innovation, renewable energy, and institutional quality. The study employs panel data from 19 G20 member countries over the period 1999–2023. The analysis is conducted across three sample groups, namely all G20 countries, developed G20 countries, and developing G20 countries. The Pooled Mean Group- Autoregressive Distributed Lag (PMG-ARDL) method is employed to identify the short-run and long-run relationships between the independent variables and the dependent variable. The results show that, in the long run, industrialization and institutional quality have a positive and significant effect on environmental degradation across all groups of countries. Economic growth has a positive and significant effect on environmental degradation in the overall G20 sample and in developing G20 countries, while it has no significant effect in developed G20 countries. Furthermore, FDI and renewable energy have a negative and significant effect on environmental degradation across all groups, whereas green technological innovation has a negative and significant effect only in developed G20 countries. In the overall G20 sample and developing G20 countries, green technological innovation has a positive and significant effect on environmental degradation. In the short run, economic growth has a positive and significant effect across all groups, while renewable energy has a negative and significant effect. Industrialization and FDI have a positive and significant effect on environmental degradation in the overall G20 sample and developing G20 countries, but have no significant effect in developed G20 countries. Green technological innovation has a negative and significant effect on environmental degradation only in developing G20 countries, while institutional quality has no significant effect across any of the country groups. Based on these findings, greater adoption of clean technologies is required, particularly technologies aimed at reducing emissions from industrialization processes, along with stronger governance across all groups of countries. In developed G20 countries, policy should focus on increasing carbon taxes on high-emitting industries and using the resulting revenues to subsidize the development of green technologies. Meanwhile, in developing G20 countries, policies should focus on strengthening human resource capacity so that knowledge and technology transfer through FDI can promote the development of adaptive green technological innovation. Thus, to achieve the NZE target, G20 countries require stronger efforts and commitment.333.7 Sumber Daya Alam dan Energi, Lingkungan2026-08-19UIN SUNAN KALIJAGA YOGYAKARTA;FAKULTAS EKONOMI DAN BISNIS ISLAMThesis