Every major event on a national or worldwide scale has some kind of environmental effect, and researchers are always looking for new strategies to lessen the destruction of ecosystems. Experts have proposed and executed policy options for energy adaptation and integration, such as the use of renewable energy, throughout the last decade. The study examines the relationship between environmental innovation, energy efficiency, and institutional quality in Southeast Asia from 1980 to 2020. The empirical relationship was evaluated using autoregressive distributed lag (ARDL), cross-sectional ARDL, and Dumitrescu-hurling models. Similarities in the dynamics of the variables led to the merging of the stationary ones after the initial difference was found. Long-term correlation between variables was confirmed using the panel counteraction test. Integration of renewable energy sources and environmental innovation improve the long-term viability of Southeast Asia's economy, as shown by the ARLD and CS-ARDL variable coefficients. Inductees who are environmentally savvy and efficient have a greater impact on environmental policy when their institutions are strong. There is a well-established feedback loop between renewable energy and environmental sustainability. There is a clear causal relationship between institutional quality and environmental sustainability. The research recommended that in order to achieve environmental sustainability, governments and policymakers increase the use of renewable energy sources and invest in environmental innovation.