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Air pollution, particularly particulate matter (PM2.5) levels, was a significant focus at the COP26 summit. Rampant production practices and changing lifestyles contribute to the issue globally. China's rapid urbanization and reliance on fossil fuels significantly threaten global health sustainability. This study aims to evaluate China's environmental agenda and offer policy recommendations for achieving a green and clean environment. To accomplish this, the study assesses the crucial factors contributing to China's air pollution levels, focusing specifically on fine PM2.5 from 1975 to 2020. By implementing the ARDL bounds testing approach, the study confirmed a non‐linear relationship between per capita income and PM2.5, demonstrating an inverted U‐shaped curve with a turning point observed at a per capita income level of US$3030 in the short run. Furthermore, a positive correlation between these variables was detected in the long run. The study also revealed that rapid urbanization initially leads to increased PM2.5 concentrations, whereas it has a decreasing effect in the long term. To progress towards sustainable production and consumption, China has embraced efficient environmental technologies and increasing clean energy sources in its production mix. Leveraging these strategies, the country strives to achieve its decarbonization agenda and ensure a cleaner future. By conducting an ex ante analysis, this study identified ecological technologies, renewable energy demand and oil resource rents as critical influencers on China's air pollution levels over the next decade. The findings underscore the pressing need to embrace alternative energy sources, eco‐friendly technologies and resource conservation to tackle air pollution effectively and accomplish China's decarbonization objectives. It is imperative to prioritize adopting sustainable practices, ensuring a cleaner environment for current and future generations. [ABSTRACT FROM AUTHOR]