Financial development is widely recognized as a key catalyst for economic growth and progress today. With developing nations prioritizing accelerated economic expansion, they have increasingly turned their attention to fostering financial market growth. However, the impact of financial development on environmental sustainability remains uncertain. Furthermore, in certain countries, there is a notable distinction between carbon dioxide emissions generated from production and those arising from consumption, this article examines the impact of financial development on consumption-based CO₂ emissions for a panel of 17 developing countries during the period of 1990–2019 with a Panel-Quantile approach. Empirical findings show that the effect of financial development on consumption-based CO₂ emissions is positive and significant in all quantiles. In addition, this study considers gross domestic product, rental rates of natural resources, trade openness, and globalization as control variables. The results of this study provide new evidence for policymakers to maintain environmental quality by focusing on the link between financial development and consumption-based CO₂ emissions

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