This study builds a green equilibrium utility model to analyze how green finance affects the transition to a low-carbon economy, with a focus on examining the utility mechanism of green credit financial instruments on regional carbon emissions. Also included are appropriate data and variable indicators for green funding and carbon emission reduction initiatives. Additionally, the empirical study was carried out using the unit root test, co-integration test, optimal lag order and model stability test, and impulse response analysis. The findings indicate that the regional carbon emissions will decrease by around 0.6 units for every unit rise in the level of green financing development. Financial instruments that support green credits have a major beneficial impact on local carbon emissions, helping to accelerate the transition to a low-carbon economy and lower local carbon emissions.