Abstract. The inflows of Foreign Direct Investment (FDI) from developed countries to developing countries may increase CO2 emissions. Presently, developing nations are perceived as pollution havens due to their tolerant environmental rules. Instead, FDI inflows from the technologically advanced countries apply their progress management and progressive technologies in emerging nations, and growth in FDI inflows decreases CO2 emissions. Most of the previous studies observed that there is a strong relationship between FDI inflows and CO2 Emissions by applying aggregate net FDI inflows. But the present paper examined on the impact of FDI inflows on CO2 emissions in the case of BRICS (Brazil, Russia, India, China, and South Africa) nations from 2000 to 2022 by applying Mutual FDI net inflows from 10 OECD (Organisation for Economic Cooperation and Development) nations, as looking into our practical outcomes, from which OECD nation FDI net inflows to BRICS nations substances for CO2 emissions in BRICS nations. The result of present study authorized that, FDI inflows to BRICS nations from Switzerland, Denmark and the UK raise CO2 emissions in BRICS nations with the affirmative of the PHH. The present study suggests that BRICS nations should encourage green project FDI inflows by decreasing environmental degradation. Capitalization nations should be appraised based on their ecological degradation in the host nations.

Keywords: FDI inflows, PHH, PHE, OECD nations and BRICS nations.