Based on panel data of enterprises of China Carbon Emission Trade Exchange from 2011 to 2019, the impact of carbon emissions trade exchange on enterprises' total factor productivity are empirically examined by using the difference-in-differences model and the mediating effect model, and the mechanism of the role played by green innovation is analyzed. The results show that carbon emission trade exchange significantly promotes the improvement of total factor productivity of enterprises, and green innovation plays a mediating role in carbon trading and total factor productivity improvement. Therefore, it is suggested to accelerate the construction of the unified national carbon emission trading market, encourage enterprises to increase green technology R&D spending and pursue green innovation-driven development.