Abstract: Green finance is a key tool for China to implement the "dual carbon" goals and promote the construction of ecological civilization. However, the proliferation and spread of the "greenwashing" phenomenon are eroding market credit, causing fund misallocation, and seriously hindering the high-quality development of green finance. Legal regulation is urgently needed. The "greenwashing" behavior not only poses micro level harm to corporate reputation and legal risks, but also has macro level impact on disrupting market order and exacerbating environmental damage. The reasons behind it include internal motives of the enterprise, external institutional deficiencies, lack of industry self-discipline, and weakened social supervision. A diversified governance framework of "government enterprise society" should be constructed, and regulation should be carried out in a coordinated manner of soft law and hard law. The government should clarify the definition and unified standards of "greenwashing", improve cross departmental supervision, financial institutions should strengthen environmental responsibility, establish mandatory information disclosure systems, and at the social level, improve industry self-discipline, promote the institutionalization of third-party supervision, continuously strengthen institutional supply and governance coordination to curb the phenomenon of “greenwashing” in green finance.