Employing data from A-share listed companies in Shanghai and Shenzhen from 2015 to 2020, this paper tests the impact of the first batch of National Sustainable Development Agenda Innovation Demonstration Zones established in 2018 on corporate green innovation behavior using the DID method. The study shows that this policy can promote the green innovation behavior of enterprises in pilot areas, which is specifically manifested in the significant increase in the number of green patent applications of enterprises. Moreover, this policy improves the green innovation quality of enterprises in “natural-resource driven” areas; in “modern-city-construction oriented” areas, it leads to the innovation distortion phenomenon of “quantity increase but quality decrease” in corporate green innovation behavior. This distortion phenomenon is weaker in enterprises with higher external attention and long-term incentives. This paper proves the main mechanism of this policy, namely capital investment and technical support. The conclusions of this paper enrich and supplement the existing literature on sustainable development policies and corporate green innovation behavior, providing theoretical support and empirical evidence for the formulation and improvement of subsequent relevant policies.