Zhou Xiaochuan, vice-chairman of the BFA, speaks at a sub-forum on April 20, 2022. [Photo/boaoforum.org]

People can find the optimal incentive mechanism of carbon reduction through the development of the carbon market.

The carbon market can play an important role in optimizing resource allocation, and the combination of carbon tax and carbon trading can be considered in carbon pricing.

China is building a "1+N" policy system in order to achieve its dual carbon goal. There are two ways to decompose the goals and tasks into various departments or places.

One way is planned decomposition used in the past and the other is market-oriented and guided by carbon price.