To achieve a zero-carbon agenda, businesses in emerging economies need to focus on green production resources to develop a circular economy. This study identified the key role of green financing in mobilizing pro-environmental behaviours for achieving sustainable production and a circular economy. The study aimed to study the effect of green financing on the pro-environmental behaviours of educational institutes within China. A quantitative methodology was adopted, and structured questionnaires were used for the collection of data from educational sector employees. The data was collected from both administrators and teachers with a random sampling technique and was later analyzed through SEM. The results showed that green financing aids institutions in the implementation of pro-environmental behaviours and also sustainable policy development was found to mediate the association between low carbon management, carbon asset transactions, and energy saving and emission reduction technologies and green financing. This study makes valuable contributions to the literature on green financing, sustainable development, and pr-environmental behaviours. The findings can help the education sector to adopt sustainable practices. It may also contribute to helping policymakers develop policies related to pro-environmental behaviours. Furthermore, the paper explores the green financial aspect of educational institutes, making it a valuable resource for both theory and practice.