Abstract
Being worlds' largest population, China is the biggest consumer of natural resources and causes the highest Carbon emissions due to its energy needs for economic development. This research aims to analyze the relationship between green finance, natural resources, carbon releases, and foreign direct investment on China's efforts towards durable economic sustainability. Difference-in-Difference frameworks are utilized to analyze the statistics acquired from 270 Chinese cities between 2002 and 2022. The findings indicate that the financial implications of carbon emissions significantly affect China's sustainable green economy. However, the short-term growth of the green economy is enhanced by the use of natural resources and the advancement of green financial markets. The results of this study provide empirical evidence that supports the theory positing a linear association among carbon releases, economic expansion, and natural resources. This study provides guidance to policymakers to make policies for enhanced and efficient use of natural resources. This may potentially contribute to the promotion of long-term sustainability in China and the facilitation of green growth.