Abstract:Based on the spatial Durbin model of 253 Chinese from 2010 to 2019, this paper conducts a regression analysis on the effect of green finance development on urban carbonemissions and its spatial spillover effects. The mediating effect model was used to test the specific path of green finance on carbon emissions. The results indicate that the development of green finance can significantly reduce urban carbon emissions in cities and neighboring cities, with a positive spatial spillover effect; The mediation effect of progress in green technology and optimization of industrial structure are significant for green finance to improve spatial carbon emission reduction; There are differences in the carbon reduction effects of green finance development in different regions of China; Environmental regulations have a positive regulatory effect in the process of achieving carbon reduction through green finance.