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This study investigates the impact of both FDI inflows and stock market developments on clean energy use across 20 emerging market economies, spanning the period 1991–2012. It accounts for cross-sectional dependence and heterogeneity in the analysis and employs robust panel econometric techniques. The empirical results on long-run elasticities display that economic output, FDI inflows and stock market developments have all a significant positive impact on clean energy consumption. Finally, the results on heterogeneous panel non-causality tests indicate the presence of unidirectional causality running from FDI to clean energy consumption in the short-run. For robustness purposes, the paper also estimates long-run elasticities for individual countries, with the findings documenting that both FDI inflows and stock market developments have a considerable positive impact on clean energy uses. The findings …