The growing importance of climate change and sustainable development has led to the emergence of green finance as an integral component of international monetary systems. For the sake of environmental preservation, pollution reduction, and the establishment of a low-carbon economy, "green finance" refers to financial investments in sustainable development. The concept, scope, and significance of green finance investment are explored in this examination of the contemporary financial landscape. Investment vehicles such as ESG (Environmental, Social, and Governance) funds, sustainability-linked loans, and green bonds are explored in the paper, along with the factors that impact green investment patterns, such as legislative frameworks, banks, and investor behaviors. The study uses primary and secondary sources to examine the growth patterns, challenges, and opportunities of green financing in fostering sustainable development. The findings not only demonstrate the positive environmental effects of green investment, but they also suggest potential policy measures that may hasten its widespread adoption. The study's significant implications for understanding how financial strategies could be aligned with environmental aims may be useful for policymakers, investors, and financial institutions.