<p>Green finance as an innovative mechanism to promote sustainable development is gradually becoming a key tool to crack the environmental dilemma. Given this context, it is crucial to investigate whether green finance policies have effectively reduced carbon dioxide (CO₂) emissions. This paper uses the launch of China’s green finance reform and innovation pilot zones as a quasi-natural experiment to investigate how Green Finance Pilot Policy (GFPP) influences enterprise CO₂ emissions. It utilizes data from Chinese A-share listed enterprises from 2013 to 2020 and applies Random Forest approach for analysis. Furthermore, the research investigates the underlying mechanism, conducts a heterogeneity analysis, and explores potential policy spillover effects. The primary findings are as follows: first, GFPP implementation has effectively mitigated enterprises’ CO₂ emissions. Second, the GFPP has reduced CO₂ emissions via green technology innovation and digital transformation. Third, the CO₂ emission reduction effect of GFPP is significantly stronger in non-state-owned enterprises (non-SOEs), in enterprises from the eastern region, and in those with longer listing duration. Finally, further analysis reveals policy spillover effects in the provinces adjacent to the pilot zones. These findings underscore the significance of GFPP in environmental governance aimed at mitigating CO₂ emissions. Furthermore, the results carry practical significance for China’s efforts to reduce CO₂ emissions under GFPP and offer valuable insights for other countries formulating similar emission reduction policies.</p>