Reducing carbon emissions is widely recognized as one of our nation's top priorities. At the national level, green financing has grown and received a lot of support. Using panel data from 30 towns and provinces in China between 2011 and 2021, this study mainly examines the effect of green money on carbon emissions. It delves into the processes by which it does so. Here are the study's findings: Results showing that green money substantially lowers carbon emissions hold up in multiple robustness tests. Secondly, by looking at the mechanics of intermediary effects, we can see that green financing might lower carbon emissions through, for example, technological innovation and better industrial structure. In conclusion, the heterogeneity analysis reveals that green financing's impact on carbon emissions varies by regional development level, with a more substantial effect observed in the western and eastern regions. Considering these results, the authors of this study suggest implementing policies tailored to individual regions and developing a diverse green finance system to promote the efficient reduction of carbon emissions.