This　study　addresses　the　pressing　challenge　of　transitioning　to　a　low-carbon　economy　in　BRICS　nations　by　investigating　the　role　of　green　finance　policies　in　enhancing　energy　efficiency　and　driving　sustainable　economic　growth.　The　primary　objective　is　to　evaluate　the　effectiveness　of　green　credit　incentives　and　transformative　insurance　in　facilitating　the　shift　from　high-carbon　to　environmentally　friendly　energy　systems.　The　analysis　covers　the　period　from　2007　to　2021,　focusing　on　the　BRICS　economies　with　specific　emphasis　on　China＇s　regional　dynamics.　Using　an　integrated　Dynamic　Stochastic　General　Equilibrium　(DSGE)　model　and　Spatial　Autoregressive　(SAR)　framework,　the　study　captures　both　economic　dynamics　and　spatial　spillover　effects　of　green　finance.　Key　empirical　findings　reveal　that:　(1)　green　finance　has　a　significant　and　positive　impact　on　energy　efficiency,　with　strong　direct　and　indirect　effects　across　provinces;　(2)　spatial　autocorrelation　exists　in　energy　usage,　indicating　that　policy　impacts　diffuse　geographically;　(3)　the　synergistic　effect　of　internet　development　and　environmental　regulation　enhances　green　finance　effectiveness;　(4)　regional　disparities　show　stronger　green　finance　impacts　in　eastern　and　western　China　compared　to　central　regions;　and　(5)　robustness　checks　using　SDM-Wij　and　2SLS　confirm　the　stability　and　reliability　of　results.　The　study　concludes　that　combining　green　credit　with　transformative　insurance　is　more　effective　than　implementing　either　policy　alone　and　recommends　a　balanced　approach　to　carbon　regulation　that　fosters　low-carbon　technological　innovation　without　impeding　economic　growth.　Policy　implications　suggest　expanding　ESG-based　credit　frameworks　and　tailoring　financial　tools　to　support　emission-intensive　sectors　transitioning　toward　sustainability.　©　2025