Coordination economic growth with sustainable development and green transition is a universal challenge for most countries. Setting up regional economies on the road to sustainable development requires shifting investment from natural resource intensive industries and greenhouse gas emissions towards a new and more efficient model of development. In this model of development the central role is taken by the financial sector, i.e. green finance and eco-inovation. Green finance is a new area of finance that has its application in the process of integrating environmental protection and economic profit. The aim of the paper to explore the role of green finance and eco-innovations in the transition to a green economy. The methodological basis of the article are the fundamental the theory of green finance and innovative development. The conclusions demonstrate the urgent need for a green transformation and the importance of developing a policy for financing eco-innovation activities that might enable eco-friendly business practices for present and future generations.