Driven by the goal of "carbon peaking and carbon neutrality", the development of green finance has become an important means of promoting sustainable economic development nationwide and contributing to the transition towards an environmentally friendly industrial structure. This study utilizes quarterly data from 2017 to 2023 and employs a Vector Autoregression (VAR) model to explore the relationship between key indicators such as green credit, green insurance, and green investment, and the industrial structure. The findings reveal that while green finance has made some progress in China, its short-term impact on industrial transformation is mixed. In the long term, green finance gradually exerts a positive influence on the optimization of the industrial structure, although these changes are primarily driven by internal factors. This study proposes several strategic recommendations, including strengthening green finance policies, improving green credit mechanisms, and increasing investment in green technologies, encouraging industry participation, and regularly monitoring and evaluating policy impacts. These measures are crucial for effectively leveraging green finance to promote industrial upgrading and contribute to China's dual carbon goals, thereby fostering sustainable economic development.

Zhuoqun Ji. Research on the Impact of Green Finance on the Development of Industrial Upgrading and Transformation under the Dual Carbon Goal. Academic Journal of Business & Management (2024) Vol. 6, Issue 8: 192-198. https://doi.org/10.25236/AJBM.2024.060828.

[1] Goldsmith, R. W. (1969). Financial structure and development. Yale University Press.

[2] Goshu Desalegn. (2023). Insuring a greener future: How green insurance drives investment in sustainable projects in developing countries? Green Finance, 5(2), 195–210. https://doi.org/ 10.3934/ gf.2023008

[3] Gu, B., Chen, F., & Zhang, K. (2021). The policy effect of green finance in promoting industrial transformation and upgrading efficiency in China: analysis from the perspective of government regulation and public environmental demands. Environmental Science and Pollution Research, 28(34), 47474–47491. https://doi.org/10.1007/s11356-021-13944-0

[4] He, W., Chen, H., & Wang, Z. (2019). An Empirical Study on the Dynamic Relationship between Green Financial Development and Carbon Emissions. Journal of Guizhou Normal University (Social Science), 1. China National Knowledge Infrastructure.

[5] Hu, J., & Zhang, H. (2022). Has green finance optimized the industrial structure in China? Environmental Science and Pollution Research. https://doi.org/10.1007/s11356-022-24514-3

[6] Hu, Y., Jiang, H., & Zhong, Z. (2020). Impact of green credit on industrial structure in China: theoretical mechanism and empirical analysis. Environmental Science and Pollution Research, 27(10), 10506–10519. https://doi.org/10.1007/s11356-020-07717-4

[7] King, R. G., & Levine, R. (1993). Finance and Growth: Schumpeter Might Be Right. The Quarterly Journal of Economics, 108(3), 717–737.

[8] Levine, R. (1997). Financial Development and Economic Growth: Views and Agenda. Journal of Economic Literature, 35(2), 688–726.

[9] Mckinnon, R. I. (1973). Money and capital in economic development. Washington, D.C., Brookings Institution.

[10] Shaw, E. S. (1973). Financial Deepening in Economic Development. New York : Oxford University Press. 

[11] Wang, W., & Li, Y. (2022). Can Green Finance Promote the Optimization and Upgrading of Industrial Structures?—Based on the Intermediary Perspective of Technological Progress. Frontiers in Environmental Science, 10. https://doi.org/10.3389/fenvs.2022.919950

[12] Wang, X., & Wang, Q. (2021). Research on the impact of green finance on the upgrading of China’s regional industrial structure from the perspective of sustainable development. Resources Policy, 74, 102436. https://doi.org/10.1016/j.resourpol.2021.102436

[13] Zhang, B., & Wang, Y. (2019). The Effect of Green Finance on Energy Sustainable Development: A Case Study in China. Emerging Markets Finance and Trade, 1–20. https://doi.org/10. 1080/ 1540496x.2019.1695595