Green finance fuels innovation in China, transforming enterprises towards sustainability.
Green finance in China helps promote green technology innovation in enterprises, especially for large-scale, state-owned, and non-heavy polluting companies. A study found that green financial policies significantly boost the development of green technology, leading to more green invention and utility model patents. These policies help companies overcome financial constraints and encourage them to invest in green innovation. External market supervision, however, does not seem to have a significant impact on promoting green technology innovation.