Forests provide essential ecosystem services but face chronic underfunding for sustainable management, with global needs in the tens of billions annually far outpacing current financial flows (FAO, 2020). Green financing instruments—such as carbon finance (REDD+), green and forest bonds, payments for ecosystem services (PES), blended finance, and emerging biodiversity credits—have evolved rapidly, yet significant challenges in measurement, governance, and equity persist (Qiao et al., 2025). This review synthesizes the current state of green financing in forest management (2010–2025), highlighting its novelty in integrating recent innovations such as outcome-based bonds and technology-enabled monitoring tools for measurement, reporting, and verification (MRV). Drawing on peer-reviewed literature, institutional reports, and case studies from Brazil, Costa Rica, China, and other forest-rich countries, the paper identifies key financing gaps, enabling conditions, and policy priorities. The findings demonstrate that green financing, when supported by robust safeguards and transparent governance, can transform forest management and align conservation objectives with long-term economic incentives.