This paper contributes to the literature that critically engages with the so-called ‘twin green and digital transition’ by assessing the twin transition as a policy discourse. Our research question is: why and how is the twin transition legitimised and implemented in the European Union (EU) despite recognised pitfalls and uncertainties? The analysis is based on interpretative text analysis of high-level EU policy documents about the twin green and digital transition and of Member States’ resilience and recovery plans. The paper assesses the political and socio-economic context as a central factor that explains how the coupling of the green and the digital comes to be seen as desirable. Our results show that innovation associated with the digital imaginary is used to discursively reframe tensions between economic and sustainability policy aims as synergies. Legitimacy is derived not only from the promise of win-win ideas but also from the claimed ability of governing institutions to steer the twin transitions in the desired direction and avoid the recognised risks. With regard to implementation, the twin transition logic guided the allocation of funds by framing the need to recover from the COVID-19 pandemic as an opportunity to accelerate the green and digital transitions. Hence, the digital imaginary merges environmental governance with the governance of innovation.