In this study, we analyze panel data from 285 Chinese cities at the prefectural level or above for the period 2011 to 2019 to empirically investigate how digital finance influences the efficiency of green economic development using the GML score within the SBM model. The study revealed a significant enhancement in the efficiency of urban green economic growth through the utilization of digital financing. Furthermore, the article offers additional evidence that the efficiency of urban green economies is enhanced by the innovative impact of digital finance. The findings of this research suggest that for the promotion of green innovation and the enhancement of urban green innovation effectiveness, China should focus on strengthening its digital infrastructure, facilitating the growth of regional digital inclusive finance, and establishing a diverse digital inclusive finance system.