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ABSTRACT As the world transitions toward a digital economy, innovative mechanisms supported by digital transformation drastically reduce greenhouse gas emissions and improve environmental quality. This study investigates the co‐evolution of industrial enterprises and governments' behavior toward a low‐carbon transition by leveraging digital economy initiatives and green technological innovation. Anchored in government low‐carbon policies, we develop a strategic evolutionary game model that captures the dynamic interactions between industrial enterprises that choose technological innovation and the government's promotion of digital economy strategies. Numerical simulations conducted in MATLAB reveal how enterprises' emission‐reduction behavior responds to varying incentives, costs, and policy interventions. The results highlight three key insights. Firstly, the interaction between governments and enterprises forms an adaptive equilibrium, in which mutually reinforcing strategies accelerate the development of the digital economy and green innovation. Secondly, the willingness of industrial enterprises to reduce CO 2 emissions is highly sensitive to the clarity of subsidies, cost constraints, and social benefits; weak incentives or ambiguous policies lead to insufficient reductions. Thirdly, multiple drivers—including emission‐reduction costs, government subsidies, additional innovation expenses, social benefits, and potential economic gains—jointly shape strategic choices. By integrating game‐theoretic modeling with simulation analysis, this study offers both strategic and policy‐oriented pathways for promoting sustainable industrial transformation. Conclusively, it contributes to advancing low‐carbon governance by providing actionable insights toward the development of the digital economy and green innovation, which will ensure sustainable policy futures.