Since 1998, China has experienced ecological forest restoration on an unprecedented scale, and the government has played a critical role in this process. Considering a dual-track mechanism—meaning a local-led administrative subcontract system and a central-led project system—this study proposed intergovernmental coordination and examined its effect on eco-friendly forest governance. Using a case-centric process-tracing approach, this study aimed to determine how central and local authorities developed a shared mission to transform forest development from economic to ecological. Through the dual-track mechanism, central and local governments can share common formal and informal interests in eco-friendly forest development. Meanwhile, the power of central and local governments separately dominates policy instruments to realize their interests. Therefore, both central and local authorities have the motivation and resources to promote eco-friendly forest development. Our findings show that vertical coordination among central and local governments for adopting eco-friendly forest development is possible, and proper policy instruments are required to achieve this.