The Central Economic Work Conference has identified "coordinated promotion of carbon reduction, pollution reduction, and green growth, accelerating the comprehensive green transformation of economic and social development" as one of the key tasks to be achieved by 2025. It has explicitly proposed "establishing a number of zero carbon parks, promoting the construction of the national carbon market, establishing a product carbon footprint management system, and a carbon labeling and certification system". Building a unified national carbon market is an important institutional innovation that utilizes market mechanisms to control and reduce greenhouse gas emissions, promote the green and low-carbon transformation of economic development, and is also a core policy tool for achieving the "dual carbon" goal. At present, China's carbon market has begun to take shape, but its potential in optimizing resource allocation, stimulating technological innovation, and leading industrial upgrading has not been fully unleashed. We need to accelerate the construction of a long-term market mechanism, guide the flow and restructuring of production factors through price signals, and promote the comprehensive green transformation of economic and social development. The carbon market reconstructs the value evaluation system of production factors, forming a transmission chain of "price signal guidance factor optimization allocation technological innovation fission", implanting green genes into the economic system, and promoting the dynamic balance between economic development and ecological protection. Price signals reshape corporate behavior. The core breakthrough of the carbon market lies in transforming intangible environmental costs into quantifiable economic signals. The extensive growth model of high energy consumption and high emissions has been broken through the market-oriented pricing of carbon emission rights. The trading price of the 2024 national carbon market carbon emission quota listing agreement once exceeded 100 yuan/ton. When the market price of carbon emission rights is higher than the marginal governance cost of enterprises, they are more inclined to reduce emission costs through independent emission reduction and use the saved quotas for trading. This pricing revolution forces companies to incorporate carbon costs into their full lifecycle management at the micro level, promotes the formation of emission reduction responsibility sharing mechanisms in the upstream and downstream of the industrial chain at the meso level, and guides the national economic accounting system to iteratively upgrade towards "green GDP" at the macro level. The allocation of factors guides the adjustment of industrial structure. The capital flow formed by carbon trading is essentially a process of reconfiguring production factors. When the market valuation of high carbon assets is suppressed and the attractiveness of low-carbon technology investment increases, the pattern of production factor allocation is restructured and the industrial structure is adjusted accordingly. Firstly, capital is shifting from the fossil energy sector to the clean technology sector. From an international perspective, from 2013 to 2019, 70% of the EU's carbon auction revenue, totaling approximately 32.1 billion euros, was used for emissions reduction investments in renewable energy, energy efficiency, and green transportation in EU countries. Secondly, technological resources are being migrated from end of pipe treatment to source prevention and control. The South Korean carbon market has forced companies to adopt carbon capture, utilization, and storage technologies by increasing the quota auction ratio from 3% to 10%. Thirdly, human resources are shifting from traditional manufacturing to green services. China's "dual carbon" policy has promoted the "green employment trend", and employment opportunities in green related fields continue to grow. Technological innovation nurtures new quality productivity. The carbon market not only forces companies to break through existing technological bottlenecks, but also provides a market validation channel for innovative achievements. When emission reduction becomes a tradable asset, technological innovation receives a dual incentive, which can create direct benefits by reducing performance costs and form new assets through the development of carbon removal technologies. This incentive mechanism is triggering a wave of application-oriented innovation in the "Pasteur Quadrant" - neither pure basic research nor simple technological improvements, but systematic breakthroughs aimed at carbon neutrality goals. From hydrogen metallurgy to photovoltaic storage, from biomass carbon capture to artificial intelligence (AI) assisted carbon capture, carbon price signals continue to drive up the economic value of technological innovation. This drives a composite transformation of production organization mode innovation, business model iteration, and institutional system upgrading, providing support for cultivating and developing new quality productive forces. The current carbon market is transitioning from scale expansion to quality and efficiency improvement, facing many challenges in this process. Cross regional administrative barriers and differences in industry standards not only hinder the flow of factors, but also weaken the collaborative emission reduction efficiency of the national carbon market; The carbon price has not yet truly become a fundamental indicator of the economic and social system, and its impact is still limited to the list of key emission units. The transmission effect of carbon price fluctuations on investment and financing decisions is limited; The traditional regulatory model has not fully adapted to the development needs of carbon market financialization, and the problems of difficult emission data accounting, verification, and traceability have not been fundamentally solved; Some small and medium-sized enterprises have not yet deeply participated in industry carbon reduction due to high monitoring, reporting, and verification costs; wait. Faced with multiple reality challenges, it is necessary to promote institutional innovation with systematic thinking, and accelerate the construction of a unified national carbon market through multidimensional collaborative efforts. One is to improve the collaborative operation mechanism of the carbon market. Explore the establishment of a carbon price regulation mechanism, study the institutional framework for the coordinated development of regional carbon markets, and construct a carbon price formation mechanism that combines benchmark prices with market fluctuations. While ensuring market uniformity and regional fairness, we can explore the path of assetization of carbon sink resources in the central and western regions, guide the eastern region to fulfill ecological compensation responsibilities through market-oriented transactions, and coordinate regional benefit distribution through fiscal transfer payment systems. Promote the construction of industry standard mutual recognition mechanism, encourage industry organizations to participate in the formulation of carbon emission accounting standards, and develop an accounting system with unified core standards and optional characteristic modules. Research and establish a cross industry carbon emission reduction conversion model to support pilot innovative trading models. In terms of regional collaboration, key city clusters can be selected to carry out carbon market integration pilot projects and establish a cross administrative quota allocation coordination mechanism. The second is to improve the transmission chain of carbon prices. Explore the organic integration of carbon pricing parameters into the existing macroeconomic policy tool system, establish an elastic correlation mechanism with energy price fluctuations and environmental tax adjustments, and promote the coordinated development of carbon markets, electricity markets, and green finance markets. Steadily promoting innovation in carbon finance products, launching risk management tools such as carbon futures and carbon options in stages, researching and developing carbon yield linked structured financial products, and enhancing market liquidity and price discovery capabilities. Under the premise of controllable risks, explore the development of cross-border carbon finance business in the pilot free trade zone, and promote the compatibility and mutual recognition of carbon derivatives trading rules with the international market. Establish low-carbon technology certification and carbon asset development systems in key industries, and promote the value transformation of innovative achievements through carbon market trading mechanisms. The third is to build an intelligent supervision system. Integrate satellite remote sensing, IoT devices, and blockchain technology to build a digital monitoring system covering the entire process of carbon emissions. Implement the "end-to-end intelligent monitoring equipment+cloud based trusted computing platform" model in key industries to achieve real-time synchronization and tamper proof emission data. Explore the application of AI technology to develop data verification and analysis tools, enhance the ability to identify abnormal data, and achieve a governance upgrade from "human defense" to "technical defense". Integrate the functions of departments such as ecological environment, financial supervision, and data management, improve the regulatory system that integrates institutional supervision, functional supervision, and behavioral supervision, and implement full chain management for controlled emission enterprises, trading institutions, and verification units. Establish a punishment mechanism for dishonest behavior in the carbon market, strengthen the main responsibility of enterprises, and clarify the supervisory obligations of third-party verification agencies. The fourth is to optimize the diversified co governance ecology. Suggest implementing a plan to enhance the carbon management capabilities of small and medium-sized enterprises, developing localized and lightweight carbon emission monitoring, reporting, and verification toolkits, providing technical guidance, equipment sharing, and other services to lower the entry barriers for small and medium-sized enterprises. Deepen the integration mechanism of "carbon account" and green finance, and guide enterprises to actively reduce emissions through market-oriented incentives. Support local governments to establish special funds for carbon market development and attract social capital to participate in carbon infrastructure construction. Explore carbon sequestration equity trading pilot projects in ecological functional areas and establish a long-term mechanism for carbon market returns to support ecological protection. To cultivate low-carbon awareness among the public, a personal carbon account system can be launched to quantify behaviors such as green travel and low-carbon consumption as carbon credits, and improve public participation channels. Author: He Ke (Director and Professor of the Agricultural Green and Low Carbon Development Laboratory at Huazhong Agricultural University)(Outlook New Era)