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Implementing green credit is a crucial step for nations looking to control social capital flows, improve environmental governance, and foster high-quality economic development in the context of the global low-carbon transition. This study analyzes the effects of green credit policy on high-quality economic development (HQED) from the perspective of enterprise innovation using panel data from 30 Chinese provinces. The data is from the period between 2011 and 2020. We use the benchmark regression and mediation effect models to analyze the relationship between green credit and HQED. The research results show that (1) green credit can directly and significantly raise the HQED. (2) Enterprise innovation mediates the relationship between green credit and HQED. Green credit can promote HQED through enterprise technical innovation, human capital innovation, stock market innovation, and incremental market innovation. (3) The most apparent mediating influence in enterprise innovation is played by human capital innovation. Our research provides policy implications for governments, banks, and enterprises to promote green transformation and achieve simultaneous economic and environmental development. [ABSTRACT FROM AUTHOR]