The rapid growth of digital finance is contributing to a significant transformation in financial access, but it also brings with it significant environmental concerns. This study deals with the concept of "Green Digital Finance", which is an innovative approach that aims to reduce the environmental impact of digital finance while promoting sustainable development, and aims to present a comprehensive roadmap for the adoption of green practices in the financial sector and increasing sustainable investments. This multidimensional strategy leverages digital technologies, including blockchain and artificial intelligence, to fund investments in renewable energy generation, green infrastructure, the United Nations' Sustainable Development Goals (SDGs), and other initiatives aligned with the Paris Climate Change Agreement. Therefore, Green Digital Finance serves as a crucial mechanism for both economic growth and environmental protection and plays a crucial role in closing the funding gap for sustainable development projects. It also has the potential to drive financial inclusion, reduce the carbon footprint of financial services, and motivate consumers to sustainable behaviour. This study examines the relevant regulatory frameworks as well as an in-depth study of Green Digital Finance, its definition, benefits, and challenges. In addition, case studies are included to illuminate successful practices and their impact on sustainable development. In conclusion, Green Digital Finance has the potential to foster change in the fight against climate change, promote corporate social responsibility, and increase long-term financial performance in the process.