The government and academic community have widespread concerns about how China utilizes financial resources to direct credit allocation and achieve high-quality economic development, especially under the dual pressures of resource constraints and environmental challenges. Analyzing panel data from 30 Chinese provinces from 2008 to 2020, this paper constructs evaluation indicators of high-quality economic development and aims to explore the impact of green credit on such development. The study concludes that green credit significantly contributes to high-quality economic development. This effect varies based on regional location, bank competition levels, the development quality of intermediary organizations, and local government debt pressure. In terms of mechanisms, the advancement of green technology, industrial structure upgrading, and energy consumption structure adjustment emerge as key transmission mechanisms. The findings underscore the importance of actively promoting green credit, steadily increasing green finance initiatives, and skillfully directing capital flows toward resourceand technology-efficient, environmentally-friendly businesses. This approach is essential to accelerate the shift in the economic development model and foster the growth of a green economy.