Green Finance Evolution and Corporate Innovation in China: Paving the Way to Dual Carbon Targets

Based on the requirement of China's dual carbon targets of peaking carbon and attaining carbon neutrality, green finance and corporate innovation are emerging. Based on the "Green Finance+" product system of Shanghai Bank, this study based on correlation analysis explores the effects of green finance on firms' innovation and the relevant mechanisms. Furthermore, motivated by the twin-carbon goals, enterprises have further developed low-carbon and green development paths, and green finance has played a role in promoting technological changes and model improvement in businesses. Besides, it examines how firms update their technological standing and optimize the use of management resources through green finance. In this paper, I analyze the relationship between green finance and the twin goals of carbon neutrality and how both initiatives raise incentives for enhancing the adoption of low-carbon, environment-friendly, and clean technology.