This paper employs a theoretical model to analyze various scenarios in which enterprises issue different bonds. It proposes that the issuance of green bonds by enterprises has an inhibitory effect on their own debt default risk. Subsequently, the study selects annual panel data from 2016 to 2020, comprising 1,604 listed non-financial companies, to empirically test the hypothesis using a Multiphase difference-in-differences (DID) model. The study draws the following main conclusions: First, the issuance of green bonds by enterprises can significantly reduce their own debt defaults. Second, the issuance of green bonds by enterprises can reduce their own debt default risks through four channels: easing financing constraints, reducing debt financing costs, improving stock liquidity, and enhancing green reputation. Third, enterprises with high reliance on external financing, high levels of information disclosure, and low levels of managerial myopia can significantly reduce their own debt default risk by issuing green bonds. Policies should be implemented to encourage enterprises to issue green bonds to promote the development of green finance.