In this research, an analysis will be carried out on the importance of policy and finance in the achievement of the green economy, which contributes to sustainable development and protection of the environment as well as inclusive growth. In this regard, this paper brings to light the importance of good policy framework which creates standards, incentives and institutional measures that lead to the promotion of renewable energy, green infrastructure and resource efficient industries. In addition, green finance is what provides capital for implementation of such projects through means of green bonds, climate finance and public-private partnership. Linking of financial systems with environmental policy helps economies shift from carbon-based systems to sustainable and circular systems. Through an analysis of global and national policy strategies, this study emphasizes that the integration of policy and finance is important for low-carbon growth.