Abstract: The construction of new energy demonstration cities represents a key strategic initiative to facilitate the transition of cities from dependence on fossil fuels toward high-quality green development. Using panel data on Chinese A-share listed enterprises from 2008 to 2022, we employ a difference-in-differences method to evaluate the impact of the new energy demonstration city policy on enterprises' pollution emissions. The results show that the policy significantly reduces the pollution emissions of enterprises located in pilot cities, and this conclusion remains valid after a series of robustness tests. Public environmental concern and high-quality green innovation are two important mechanisms for the effectiveness of the policy. Further heterogeneity analysis reveals that the policy effects are more pronounced for state-owned enterprises, high-tech enterprises, and heavy-polluting enterprises. Therefore, the government should expand the pilot scope of new energy demonstration cities, encourage enterprises to carry out substantive innovation and strengthen public participation, and build a collaborative governance “new ecosystem”.