The present paper addresses the issue of causal relationships between CO₂ emissions, energy consumption (EC), foreign direct investment (FDI), gross domestic product (GDP), and openness of the economy in India by employing time-series data for 37 years from 1978 to 2014. The result indicates the existence of the long-run relationship between the considered variables. Further, a strong joint unidirectional causality is running from energy consumption, foreign direct investment, gross domestic product, and openness of the economy to CO₂ emissions. The finding supports the thesis of the causal cyclical relationship between the above-mentioned variables; therefore, the policy of efficient energy use along with the adaptation of new technology in production activity will address the issue of reduction in CO₂ emissions without compromising the objectives of high growth rate through foreign direct investment and openness of the economy.