Governing the Green Transition: How Institutional Quality Conditions Renewable Energy's Sustainability Impacts in <scp>BRICS</scp> and <scp>MENA</scp>

ABSTRACT The global race to decarbonize will be won or lost not by technology alone, but by the strength of governance that directs it. While renewable energy has been widely promoted as a pathway to sustainable development, its effectiveness depends heavily on the institutional environment in which transitions unfold. This study examines how governance quality connects renewable energy adoption to multidimensional sustainability—spanning economic, social, and environmental outcomes—across BRICS and MENA economies from 1996 to 2022. Using cross‐sectionally augmented autoregressive distributed lag (CS‐ARDL) and panel quantile ARDL (PQARDL) models, the analysis captures both long‐run dynamics and distributional asymmetries often overlooked in conventional approaches. Results show that renewable energy adoption alone yields modest sustainability gains; however, when reinforced by robust governance institutions, its effects are significantly amplified across all three dimensions. Comparisons reveal that BRICS countries benefit from stronger renewable‐governance synergies, whereas MENA economies experience weaker outcomes due to institutional fragility and resource dependence. These findings underscore that governance is not an auxiliary factor but the missing link that ensures renewable energy transitions contribute meaningfully to sustainable development. By linking empirical evidence to the Sustainable Development Goals—particularly SDG 7 (clean energy), SDG 8 (inclusive growth), SDG 13 (climate action), and SDG 16 (strong institutions)—the study highlights the urgent need for integrated energy‐governance strategies. Strengthening regulatory capacity, enhancing institutional accountability, and embedding transparency into renewable energy deployment are essential steps to make transitions in emerging economies both equitable and sustainable.