Climate change and environmental deterioration pose significant threats to the long-term well-being of our planet. The study focuses on measuring the impact of Carbon Pricing Mechanism on financial flows toward sustainable projects. To meet the research objectives, the first questionnaire was developed by conducting the factor analysis of the variables framed after a review of the literature, and then PLS-SEM was applied to a sample size of 363. On running the analysis of SMART-PLS 4, it was found that there is a strong relation between dependent and independent variables but a weak relation of moderation. The analysis covered in this research has important consequences for efficient corporate management. It offers a strategic plan for making well-informed decisions, which is the foundation of effective management. From a managerial perspective, the findings underscore the critical significance of policy interventions, specifically carbon pricing mechanisms, in shaping the flow of financial resources towards sustainability initiatives. Businesses should recognize that these policies possess the capacity to significantly impact public comprehension and perception of climate change.