The paper illustrates the dynamic causal connection between green finance (GF) and carbon emissions (CO2) from global perspective. The study indicates that the correlation between GF and CO2 is not uniform in different periods. GF has a dual effect on CO2, the negative effect may be caused by technological innovation, and the positive effect may be explained by the lower prices of traditional energy. Meanwhile, CO2 exerts a beneficial effect on the GF as a result of environmental pressures such as climate change, whereas it has a visible negative impact on the GF owing to factors such as imperfect green financial markets. By analyzing the three paths of limiting highly polluting enterprises, technological innovation and policy signals, the purpose of this study is to develop a theoretical framework in order to demonstrate the significance of the variables. In addition, this paper explains the reasons for the different correlations between GF and CO2 over time in a global view. Countries around the globe can take different measures according to the different causes, which will be of great benefit in reducing global carbon emissions. In this article, it further makes relevant proposals such as improving the system of green financial market, which can be of vital importance to governments, enterprises, and others.