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Scholars have spent decades studying how environmental (“green”) industry can promote sustainability. Few studies, however, have discussed corporate dynamics within green industry and their spatial interactions with other manufacturing and service industries. Drawing on the theoretical perspective of industrial value chain differentiation, this study unpacks the spatiotemporal dynamics of environmental enterprises by various types in China. We use the Wasserstein coagglomeration index and Poisson regression to identify the spatial coagglomeration of green and pollution-intensive (“brown”) industries. The results show that (1) China’s environmental industry is still in the early and middle stages of development with low and medium added value as the core; (2) green enterprises are mainly distributed in the eastern coastal areas and a few inland provinces with developed infrastructure; and (3) the entry and spatial distribution of equipment and engineering enterprises are highly correlated with local brown industries, whereas high-end service enterprises tend to concentrate in economically developed urban agglomerations. This research hopes to reveal the spatial characteristics of environmental industry in the regional green transition through the decomposition of its value chain and the analysis of the spatial coagglomeration effect. [ABSTRACT FROM AUTHOR]