Grass, like other plants, contains Chlorophyll. Chlorophyll is a key piece of photosynthesis (taking in sunlight to convert CO2 and water into glucose and oxygen).
Chlorophyll just happens to be green. Since it is green, it absorbs all sunlight *except* the green light that it is reflecting. Importantly, if plants took in too much sunlight they would be damaged by the excess heat, and if they took in too little, they would not get enough energy.
Because of the depths in the ocean where the organisms producing chlorophyll first evolved, green ended up being the right colour to land on when evolving the capability. Just enough non-green light came through, so by being green it absorbed the right amount.
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