Abstract:The system dynamics method was used to construct the financing environment evaluation model for energy conservation and environmental protection industry, Anylogic software was used for simulation, and the change of financing environment under different circumstances was explored. The results show that :(1) the financing environment of China"s energy conservation and environmental protection industry is in the process of continuous optimization, and the optimization of financing environment will also promote the accelerated growth of output value of energy conservation and environmental protection industry.(2) Committed to technological innovation and expanding the scale of the industry can play a better role in optimizing the financing environment, but different circumstances have different degrees of improvement to the financing environment, and increasing the contribution rate of scientific and technological progress can most significantly improve the financing environment.