Abstract: Promoting clean production of enterprises is of great significance to achieving high-quality economic development. In this article, using the quasi-natural test of the industrial cleaner production standard, which has been gradually implemented in 2003, based on the 1998—2012 data of Chinese industrial enterprises and enterprises’ pollution emissions database, a multi-period DID method was used to evaluate the environmental governance effects of cleaner production environment regulation. Research shows that cleaner production environment regulation has reduced the intensity of enterprises’ pollution emissions, and this emission reduction effect is more pronounced in eastern regions, state-owned, large-scale and high-energy-consuming enterprises, and high-tech and heavily polluting industries. Further exploration of the internal mechanism of enterprise pollution reduction finds that the implementation of cleaner production environment regulation can force enterprises to engage in green technology innovation activities to achieve pollution reduction, which provides micro-level evidence support for the “Porter Hypothesis”. In addition, cleaner production environment regulation has accelerated the survival of the fittest by strengthening the market selection mechanism. This is manifested in the financial and technical barriers formed by cleaner production environment regulation that has raised the barriers to industry entry and hindered the entry of potential companies. For incumbent companies, cleaner production environment regulation reduces the probability of high-productivity companies’ exiting the market while forcing low-productivity companies to exit the market.