This research aims to analyze green finance's applicability in forming sustainable investment policies in the USA. This research fills a literature gap to uncover the long-run equilibrium cointegration between FDI inflows, CO2 emissions, renewable energy, and renewable electricity. Using VECM and Johansen co-integration tests, this paper discusses the long-run relationship of these variables. Time-series data for 32 years (1990-2021) is the basis for analysis, largely gathered from the World Bank. The analysis reveals that the two variables are co-integrated over the long run, though there is a short-run time-varying co-integration relationship. For instance, the co-integration test results present a trace statistic of 72.77, and its p-value is 0.0001, which justifies the existence of co-integration, which is a long-term equilibrium. The IRF analysis also shows that renewable energy consumption positively affects FDI, and levels off at 0.28 after 4 periods, whereas CO2 emissions have a negative long-run effect on FDI with a coefficient of - 4.9153. Based on these findings, applying green finance policies for renewable energy import can encourage foreign investments in the short run. However, the cost involved in shifting to renewable energy sources may lead to a restricted number of long-term investments. This motivated the study to recommend a search for more information on such sector dynamics.