The present invention features a direct synthesis of light olefins through the hydrogenation of carbon dioxide. In2O3 supported on cubic phase yttria-stabilized zirconia is used as a catalyst and is mixed with a molecular sieve to perform the hydrogenation. The cubic crystal structure of the yttria-stabilized zirconium dioxide is an excellent support for indium oxide particles and prevents their deactivation during CO2 hydrogenation. This direct synthesis route promotes a stable and efficient method for producing light olefins.