As one of the world’s largest economies and the biggest emitter of greenhouse gases, China plays a critical role in global environmental management. As China emphasizes new quality productive forces, understanding how green finance can enable green innovation quality (GIQ) is essential for projecting China’s influence in the sustainable development of the global ecological environment. This paper sets up a quasi-natural experiment using the Green Credit Policy (GCP) to examine the impact of green financial credit allocation on the enterprises’ GIQ. The findings demonstrate that the GCP has the potential to improve the GIQ of the green credit-restricted industries, compared to non-green credit-restricted ones. It is worth noting that as China speeds up its industrial digital transformation and productivity improvement, green financial credit allocation can elevate the digitization level and total factor productivity of green credit-restricted industries, leading to a higher GIQ by curbing corporate shadow banking. Further research shows that fintech and financial regulation can strengthen the positive influence of the GCP on GIQ. Moreover, regional intellectual property protection has a beneficial synergistic effect in combination with the policy.