In the context of increasingly severe global climate change, the international community's demand for reducing greenhouse gas emissions is urgent. This paper explores the critical role of green finance policies in guiding capital flows to green and low-carbon areas. In order to achieve carbon reduction goals under the global climate change context. The main content of this paper includes how green finance, through green credit and green bonds, promotes the activity and efficiency of carbon emission trading, thus significantly affecting carbon emission intensity. Additionally, it details the policy background, development process, and challenges faced by the carbon emission trading system, including issues such as limited industry coverage and insufficient market liquidity. Finally, it proposes policy recommendations and future prospects, such as improving laws and regulations, promoting technological innovation, and expanding market coverage, and strengthening international cooperation to further optimize the carbon emission trading market and help achieve sustainable development goals.