<p>Given the substantial risks posed by climate change and environmental challenges, firms are increasingly adopting climate governance strategies. This study, grounded in resource-based view and institutional theory, examines the relationship between climate governance and environmental innovation. It also explores how external government environmental regulations and internal technological capabilities moderate this relationship. We validate our hypotheses using Chinese A-share listed companies as the research sample from 2012 to 2021. The empirical results show a positive relationship between climate governance and environmental innovation. Additionally, government regulations have an inverted U-shaped moderating effect, while technological capability positively moderates this relationship. These results contribute to the understanding of corporate governance, urging firms to integrate climate change into their governance frameworks to promote environmental innovation. We also offer recommendations for managers to enhance resource utilization and for regulatory bodies to strengthen environmental governance.</p>