Fostering green innovation diffusion is one of the goals of the European Green Deal, European Commission's ambitious plan of eliminating greenhouse emissions in the European Union by 2050. This study approaches diffusion of green innovation through the lens of evolutionary economics by considering concepts like path-dependency and technology lock-in. The aim is to gain insights on the effectiveness of different public financing tools in supporting the diffusion of green innovation. For this purpose, an agent-based computational model is developed consisting of four entity types: a commercial bank, a state investment bank, consumers, and innovative firms.The model is used to study the interaction of financial policies, consumer preferences, firm's innovation activities and the conditions under which the desired behavior, green innovation diffusion, emerges.