Economic development is closely related to higher levels of energy supply, which in turns, lead to higher GHG emissions, especially in developing countries. More and more policymakers consider Energyrelated aid is one of the key components of both Development and climate change strategies. This study investigates long run and short-run nexus between energy-related aid, CO2 emissions, economic growth and electricity consumption. By implementing PMG estimator for 30 countries in three income groups over the period 1995 to 2013, we find that energy-related aid has positive long-run impact on electricity consumption in low-income group only. The results also reveal long-run bi-directional relationship for CO2 emissions-GDP and GDP-electricity consumptions in low-income group, also for CO2 emissions-GDP and CO2 emissions-electricity consumption in upper middle-income group. Moreover, long run unidirectional relationships were found from CO2 emissions to electricity consumption in low-income group, from GDP and electricity consumption to CO2 emissions in lower middle-income group, and from electricity consumption to GDP in upper middle-income group. This finding can guide to allocate more of energyrelated aid to low-income countries.