Analysis of How Green Finance Helps Enterprises Achieve Low-Carbon Transformation

Abstract

Against the backdrop of global efforts to address climate change and China’s “dual carbon” goals, enterprises characterized by high energy consumption and high emissions are facing urgent pressure to transition to low-carbon practices. Green finance, as a key tool for guiding capital flows to green and low-carbon sectors, plays an irreplaceable role in alleviating the financing gap for transformation and driving green innovation in enterprises. This article aims to systematically elucidate the intrinsic mechanism and practical path of green finance in helping Chinese enterprises achieve low-carbon transformation. The study first outlines the concept and types of green finance, as well as the evolution of China’s green finance policy system. Furthermore, the paper delves into the three core mechanisms of capital allocation, risk management, and incentive constraints to analyze how tools such as green credit, green bonds, ESG ratings, and carbon pricing can promote corporate emission reduction and green technology innovation. Finally, considering the current challenges such as inconsistent standards, information asymmetry, and inadequate tools, policy recommendations are proposed to improve the standards system, accelerate product innovation, and cultivate professional talent. This article argues that green finance, through market mechanisms, effectively empowers enterprises to achieve low-carbon transformation and is an important financial guarantee for promoting systemic economic and social changes and achieving carbon neutrality goals.