Based on the innovation-driven vision, this article comprehensively examines driving factors, realistic dilemma and realization path of green finance development in China. The research shows that the internal motivation of green finance development in China is due to constraints of resources and environment, changes of national policies, the transformation and innovation of the financial industry itself, the construction of the Belt and Road, and the construction of a new G20 global governance framework. The current predicament of green finance development mainly lies in the unsound green financial service system, the lack of motivation for financial institutions to carry out green business, the inadequate supporting system, the distortion of local government behavior, the high risk of green finance and the lack of innovation, the lagged intermediary service system, the lack of legal system of green finance, and so on. The alternative paths to promote green finance development include synergies among multiple policies, institutional innovation of financial institutions, innovation of business models, innovation of property rights trading platforms and green investment and financing mechanisms.