The Impact of Green Finance on the Eco-friendly Transformation and Innovation of Heavily Polluting Enterprises

As environmental concerns continue to escalate, green finance has become a pivotal instrument for fostering sustainable economic growth, attracting heightened attention. This article, by reviewing literature and empirical analyses from 2018 to 2024, explores the mechanism by which green finance influences heavily polluting enterprises to promote green transformation and innovation. The results of research confirm that green finance will intensify the financing constraints and pressures on heavily polluting enterprises, thereby motivating them to accelerate transformation or innovation; at the same time, green finance also advances the improvement of market regulation, bringing green talent flow; in addition, green credit, as the main proportion of green finance, is also gradually playing its positive role in a larger range. Through the literature research, this article believes that green finance policies provide a variety of choices, which strongly foster the development of green industries and stimulate enterprises to undergo autonomous transformation and innovation; it also provides relevant suggestions for the green transformation of heavily polluting enterprises in various industries.