Green finance has a significant impact on promoting sustainable economic development, and its mechanisms are mainly reflected in multiple aspects. Green finance promotes economic structural transformation by directing funds towards environmental projects, facilitating the construction of green technologies and sustainable infrastructure. Policies and market incentives, such as green ratings and environmental performance evaluations, encourage companies to improve their environmental performance and social responsibility, enhancing their long-term competitiveness. Meanwhile, green finance also helps businesses cope with the challenges posed by climate change by reducing environmental risks and improving resource efficiency. Overall, green finance not only improves environmental quality, but also promotes the green transformation of the economy, making important contributions to achieving global sustainable development goals.

Zhenxiang Xu, Xingyu Zhu. The Impact Mechanism of Green Finance on Promoting Sustainable Economic Development. Academic Journal of Business & Management (2024) Vol. 6, Issue 9: 157-161. https://doi.org/10.25236/AJBM.2024.060922.

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