Under the 'dual carbon' goals, there is an urgent need for an in-depth analysis of the institutional drivers of green finance development. Using China's provincial panel data from 2000 to 2023, this study systematically examines the impact of market-oriented reforms on the development of green finance. The findings suggest that market-oriented reforms can significantly promote the development of green finance, a conclusion that remains valid after multiple robustness tests. Heterogeneity analysis reveals that this effect is more pronounced in eastern and north-eastern regions, as well as in provinces with lower levels of marketisation. Mechanism tests demonstrate that market-oriented reforms indirectly empower green finance through two pathways: driving social consumption upgrades and enhancing openness to the outside world. Meanwhile, digital infrastructure plays a positive moderating role in this process. Further threshold analysis shows that the effects of market-oriented reforms have a dual-threshold characteristic: their catalytic effect is significantly amplified only when the level of marketisation exceeds a critical threshold, after which it increases marginally. This study provides empirical support and policy insights for the coordinated advancement of market-oriented reforms and the development of a green finance system.