ASEAN is becoming one of the fastest-growing economies in the world backed by rapid urbanization, higher mobility, and structural transformation. These developments came with concerns of rising carbon emissions due to high reliance on fossil fuel resources in both consumption and energy production. Thus, a need for more investment in renewable energy has emerged. This paper investigates the impact of financing sources on carbon emissions in the ASEAN region using panel data from six ASEAN states i.e., Indonesia, Laos, Malaysia, Philippines, Thailand, and Vietnam from 1986 to 2018. Four financing source variables were used in this analysis: domestic credit, government expenditure, FDI, and ODA. This study employed Pooled Mean Group estimation to assess the impact of each variable alongside Dynamic Fixed Effects to enrich the results. The results confirmed a long-run relationship among the variables and validated the EKC relationship between income and CO2 emissions. Among the interest variables, government expenditure and FDI are shown to induce carbon emissions in the long run while ODA is found to have an inverse effect on CO2 emissions in both the short and long run. Relevant policy implications were also discussed and presented in this study.ASEAN is becoming one of the fastest-growing economies in the world backed by rapid urbanization, higher mobility, and structural transformation. These developments came with concerns of rising carbon emissions due to high reliance on fossil fuel resources in both consumption and energy production. Thus, a need for more investment in renewable energy has emerged. This paper investigates the impact of financing sources on carbon emissions in the ASEAN region using panel data from six ASEAN states i.e., Indonesia, Laos, Malaysia, Philippines, Thailand, and Vietnam from 1986 to 2018. Four financing source variables were used in this analysis: domestic credit, government expenditure, FDI, and ODA. This study employed Pooled Mean Group estimation to assess the impact of each variable alongside Dynamic Fixed Effects to enrich the results. The results confirmed a long-run relationship among the variables and validated the EKC relationship between income and CO2 emissions. Among the interest variables, government expenditure and FDI are shown to induce carbon emissions in the long run while ODA is found to have an inverse effect on CO2 emissions in both the short and long run. Relevant policy implications were also discussed and presented in this study.