There needs to be more empirical research quantifying the relationship between the growth of green finance (GF) and green productivity. This study investigates this connection by analyzing data from 30 regions in China from 2006 to 2022. We utilize a comprehensive GF growth index to assess the impact. The results reveal a substantial increase in green manufacturing in response to more excellent green financing, fostering environmental sustainability. Both GF and total factor production exhibit upward trajectories, indicating the effectiveness and productivity of green financial initiatives. Furthermore, regression analysis demonstrates a significant positive effect of increased green financing on output. This effect is expected to be more pronounced in regions with more robust economic and social conditions, lower public interest in environmental preservation and higher pollution levels. Our findings suggest that implementing GF policies further enhances the positive effects of expanding green financing. This research has important implications for China’s environmental protection and green financing efforts, serving as valuable insights for environmental analysts, policymakers, local governments, financial institutions and legislators involved in GF policy implementation.
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