This study utilizes data from Shanghai and Shenzhen A-share listed companies from 2011 to 2021 to explore the impact of foreign shareholding on the development of a low-carbon economy and the underlying mechanisms. Findings show that foreign shareholding significantly reduces corporate carbon emissions and promotes corporate environmental responsibility and low-carbon transformation. The paper further investigates how foreign shareholding reduces carbon emissions by increasing corporate investments in environmental protection and driving green innovation. Foreign participation is found to improve the efficiency of corporate resource allocation and innovation capabilities, allowing for continuous improvements in low-carbon technologies and production processes. The study also examines the effect of corporate environmental strategies and green technology advancement on the relationship between foreign shareholding and carbon emissions, revealing the heterogeneity of foreign investment impacts on low-carbon development under different corporate environments and capabilities.