Achieving the goals of peak carbon emissions and carbon neutrality is a systemic reform and requires societal efforts. The digital economy, a new engine of high-quality economic growth, should play a key role in reaching these goals. China's growing digital economy has gained achievements and its impact on reducing carbon emissions has garnered academic attention. This paper investigates the topic from both theoretical and empirical perspectives using 10-year panel data from Chinese provinces spanning 2011 to 2020. Our empirical analysis reveals that the “digital economy” can effectively reduce carbon emissions across all provinces and regions in China, with particularly significant impacts in the western and central regions. Furthermore, from the perspective of regional innovation capacity, we find that the digital economy can achieve carbon emission reductions by enhancing regional innovation. This study not only offers a new research perspective for understanding the impact of the digital economy on carbon emissions but also provides policy insights for promoting the green transformation of economic and social development. These findings are crucial for actively and steadily advancing towards carbon neutrality and peaking carbon emissions.