This dataset contains the panel data used in the study "Digital transformation as a catalyst: rethinking the FDI–green finance nexus in reducing carbon emissions". The data cover 20 emerging economies (Argentina, Bangladesh, Brazil, Chile, China, Colombia, Egypt, India, Indonesia, Malaysia, Mexico, Nigeria, Pakistan, Philippines, Saudi Arabia, South Africa, Thailand, Turkey, United Arab Emirates, and Vietnam) over the period 2010–2023, yielding 280 observations (20 countries × 14 years). The dataset includes: (1) Raw_Data sheet with all variables (LCO2, FDI, Green Finance Index, Digital Transformation Index, control variables, and interaction terms); (2) Codebook sheet with detailed variable definitions, expected relationships, and measurement notes; (3) Summary sheet with descriptive statistics (obs, mean, std. dev., min, max) for all main variables. Secondary data sources include the World Bank World Development Indicators (WDI), UNCTADstat, International Telecommunication Union (ITU), Climate Bonds Initiative (CBI), and OECD green finance databases.