Abstract

At a vital stage in the global fight against environmental degradation, green credit programs are promoting carbon neutrality and helping the switch from carbon-intensive to cleaner energy systems. This research examines energy efficiency and green credit generation using spatial Durbin models and SE-SBM. Using provincial-level panel data from China between 2007 and 2022, the empirical analysis reveals that green credit programs increase energy performance and have considerable spillover effects on bordering provinces. These findings suggest that concentrated financial approaches increase local energy results and regional efficiency. This integrated approach stresses how financial institutions, energy policy, and corporate environmental responsibility affect sustainable development. Sustainability in finance and business decision-making helps companies balance economic and environmental goals. This strategy promotes a holistic view that integrates environmental performance into corporate value. The various regional effects in China—especially in central, eastern, and western provinces—stress the necessity for contextualized policy execution. The study found that green innovation mediates the energy efficiency effects of green credit, notably in construction. These findings help lawmakers create region-specific financing instruments that promote energy-saving and sustainable building. In conclusion, financial mechanisms should be used more in environmental governance and corporations should be proactive in sustainability programs. It considers green credit a strategic instrument for long-term environmental and economic resilience rather than a compliance tool.