Improving environmental performance is a key strategic goal for China to promote high-quality economic growth and achieve green transformation. The rapid growth of green finance has a significant and profound impact on China’s sustainable environmental development. How to strengthen regional environmental performance is currently the focus of academic attention. This article uses the panel data from 30 provinces in China to explore the effect of green finance on regional environmental performance. The research finds that green finance can significantly improve regional environmental performance and promote the improvement of regional environmental performance by enhancing green technological innovation capabilities. Heterogeneity analysis reveals that green finance has a more obvious promoting effect on regions with high environmental regulation intensity and in the eastern region.