Environmental regulation is a necessary step in the stage of high-quality economic development. This research explores the synergistic effect of environmental regulation and economic development from the perspective of corporate financing efficiency. The correlation between environmental regulation and corporate financing efficiency is examined using a sample of China’s 188 A-share listed companies in the heavy polluting industry and the clean energy industry from 2009 to 2020. The results show that there is a "U-shaped" relationship between environmental regulation and financing efficiency

which decreases and then increases. At the same time

the nature of state ownership and the corporate internal control weaken the "U-shaped" relationship between the two. The study further finds that the relationship between environmental regulation and corporate financing efficiency is not "U-shaped" in the heavy polluting industry

but is more pronounced in the clean energy industry. The study provides new theoretical logic and empirical evidence for understanding the relationship between environmental regulation and corporate financing efficiency under the sustainable development strategy. And it provides a reliable basis for government environmental regulation policy implementation.