Research on the Role and Mechanism of Green Finance in Daily Economic Activities

With the increasing severity of global ecological and environmental issues, green development has become the core direction of economic transformation in various countries. As a key link connecting financial resources and the green industry, green finance has become increasingly prominent in daily economic activities. With green finance as the study object, this paper uses the literature review approach to systematically run through its background of emergence and theoretical foundations, then deeply analyzes its function in guiding social capital flow in daily economic activities, promoting enterprises' green transformation, and optimizing residents' consumption structures. Finally, it tries to explore the core mechanisms that can be realized by policy guidance, market incentives, and risk management. The research finds that green finance can effectively alleviate the financing constraints of green projects and promote industrial structure upgrading; however, it still faces challenges such as inconsistent standards and insufficient product innovation. In the future, it will be necessary to improve the policy system and market environment further, enhance the inclusiveness and effectiveness of green finance, and provide support for high-quality economic development.