This study investigates the effectiveness of green industrial policies in stimulating green innovation within China's polluting industries from 2011 to 2022. Using data from 30 provinces and employing Difference-in-Differences (DID) and Propensity Score Matching DID (PSM-DID) models, the research examines the dynamic relationship between green industrial policy implementation and innovation in environmentally detrimental sectors. The findings reveal a significant positive correlation between green industrial policies and green innovation, particularly in regions with higher pollution levels. The study highlights the importance of well-structured green industrial policies as effective catalysts for fostering sustainable technological innovations in polluting industries. Policy implications emphasize the need for targeted, region-specific approaches to maximize the potential of green industrial policies in promoting environmental sustainability and economic growth. The research contributes to the literature by providing empirical evidence on the conditional effectiveness of green policies and offers practical guidance for policymakers seeking to enhance environmental sustainability through innovation-driven strategies.This study investigates the effectiveness of green industrial policies in stimulating green innovation within China's polluting industries from 2011 to 2022. Using data from 30 provinces and employing Difference-in-Differences (DID) and Propensity Score Matching DID (PSM-DID) models, the research examines the dynamic relationship between green industrial policy implementation and innovation in environmentally detrimental sectors. The findings reveal a significant positive correlation between green industrial policies and green innovation, particularly in regions with higher pollution levels. The study highlights the importance of well-structured green industrial policies as effective catalysts for fostering sustainable technological innovations in polluting industries. Policy implications emphasize the need for targeted, region-specific approaches to maximize the potential of green industrial policies in promoting environmental sustainability and economic growth. The research contributes to the literature by providing empirical evidence on the conditional effectiveness of green policies and offers practical guidance for policymakers seeking to enhance environmental sustainability through innovation-driven strategies.