In the face of the challenges of global climate change and environmental degradation,green finance and transformational finance have emerged as key approaches to promote economic transformation towards sustainable development.In this paper,the definition,objectives,implementation means and effects of green finance and transition finance are discussed in depth,and the similarities and differences between them in promoting environmental improvement and economic transformation are revealed.The study found that although both green finance and transformational finance are committed to solving environmental problems and promoting sustainable development,they differ significantly in terms of target focus,fund use and policy support.Based on these findings,the paper proposes an innovative action plan aimed at promoting the effective integration of green finance and transformational finance through policy formulation,financial product development and market mechanism optimization,and providing new ideas and tools for achieving green economic transformation.In addition,the paper also emphasizes that policy makers should fully consider the specific needs and differences between green finance and transitional finance when designing relevant policies,so as to ensure the effectiveness and pertinence of policy measures.