<p>To tackle the insufficient motivation for corporate green innovation, this study examines the impact and underlying mechanisms of green public procurement (GPP) on corporate green innovation from the resource-based view (RBV). It specifically focuses on how internal and external governance alleviate firms’ financing constraints to mediate this relationship. Using data from Chinese A-share listed companies spanning 2004 to 2019, we find that GPP significantly promotes corporate green innovation—both in terms of quantity and quality. Specifically, this positive effect is partially achieved through alleviated financing constraints. On the one hand, reduced competition over external marketing resources alleviates financing constraints for firms. On the other hand, improved internal governance helps firms strengthen their capacity to secure and utilize funds efficiently. This study contributes valuable insights to the existing literature on the micro-level effects of government procurement, while advancing understanding of market-oriented environmental policy tools.</p>