South Asian countries, despite flourishing economically, have failed to achieve environmental sustainability in tandem. Therefore, emphasizing the relevance of establishing green growth, this study examines how carbon productivity levels are determined in this region. Hence, by linking carbon productivity gains with environmentally sustainable (or green) growth, the findings endorse that financial development and renewable energy consumption boost carbon productivity, both in the short- and long-run. Contrarily, urbanization and corruption control do not influence carbon productivity levels across South Asia. Therefore, considering these findings, the South Asian governments should adopt greener financial development- and renewable energy transition-related policies in order to attain environmentally sustainable growth in the future.