As the “double carbon” goal gains traction worldwide, achieving a balance between economic growth and environmental sustainability has become a focal point for researchers. Green finance, as a specialized financial service, offers a new approach to sustainable development. This study analyzed carbon emission sources in 25 Chinese provinces between 2007 and 2020, dividing them into energy structure, economic development, energy efficiency, and industrial structure, using a two-stage LMDI method. It then examines the linear and non-linear relationships between green finance and carbon emissions using spatial measurement methods. The findings indicate that green finance is an effective way to reduce carbon emissions, primarily through its impact on energy structure, energy efficiency, and industrial structure. There are significant non-linear relationships between green finance and the factors affecting carbon emissions, with spatial effects playing a significant role in carbon emissions influenced by energy structure, economic development, energy efficiency, and industrial structure.

In light of the growing emphasis on sustainable development, financial poverty alleviation has become an increasingly important strategy. This study explores whether green finance, a new financial tool aimed at achieving sustainable development, can effectively reduce poverty. Using data from 25 provinces in China between 2004 and 2019, the study builds the China Green Financial Development Index, using the improved entropy power method, and uses a spatial econometric model to analyze the linear and non-linear impact of green finance on absolute and relatively poor poverty. The results demonstrate that green finance has a positive impact on poverty reduction, with a more significant impact on rural poverty reduction than urban poverty reduction. Interestingly, non-linear results reveal that the impact of green finance on rural poverty alleviation has gradually weakened, while the impact on urban poverty alleviation has gradually increased. Moreover, the introduction of technological progress as an intermediary variable has revealed an intermediary effect between green finance and poverty reduction. Overall, this study contributes to our understanding of the link between green finance and poverty and suggests a new approach to poverty alleviation.