Research on the Impact Mechanism of Green Finance on Low-carbon Innovation of Real Economy

Abstract

Driven by global climate change and sustainable development goals, green finance has attracted widespread attention as an important tool to promote the transformation of a low-carbon economy. Green finance provides financial support and policy incentives for low-carbon innovation projects through financial instruments such as green credit, green bonds, and green funds, reduces corporate financing costs, promotes corporate green transformation, and promotes market development. This paper aims to explore the impact mechanism of green finance on low-carbon innovation in the real economy. First, this paper systematically sorts out the definitions and evaluation indicators of green finance and low-carbon innovation, and analyzes relevant research results at home and abroad. Secondly, this paper discusses in detail the impact mechanism of green finance on low-carbon innovation in the real economy from four aspects: providing financial support, reducing financing costs, promoting corporate green transformation, and promoting market development. Through typical case analysis, this paper summarizes the successful experience and lessons of green finance in supporting low-carbon innovation projects. Finally, this paper puts forward relevant policy recommendations, including government support and guidance in the development of green finance, participation and innovation of financial institutions, and green development strategies of enterprises. Research shows that green finance plays a significant role in promoting low-carbon innovation in the real economy, which not only improves the innovation ability and market competitiveness of enterprises, but also promotes the sustainable development of the economy. Future research can further explore the application effects of green finance in different scales and industries, deepen the understanding of the relationship between green finance and low-carbon innovation, and provide a scientific basis for policy making and practice.