{"id":1656,"date":"2024-03-28T15:10:19","date_gmt":"2024-03-28T09:40:19","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=1656"},"modified":"2024-04-03T07:21:07","modified_gmt":"2024-04-03T01:51:07","slug":"q-consider-the-following-statements-55","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-consider-the-following-statements-55","title":{"rendered":"Q. Consider the following statements:"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Statement-I<\/strong>: Carbon markets are likely to be one of the most widespread tools in the fight against climate change.<br><strong>Statement-II<\/strong>: Carbon markets transfer resources from the private sector to the State.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Which one of the following is correct in respect of the above statements?<\/p>\n\n\n\n<ul class=\"mcq wp-block-list\">\n<li>Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I<\/li>\n\n\n\n<li>Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I<\/li>\n\n\n\n<li>Statement-I is correct but Statement-II is incorrect<\/li>\n\n\n\n<li>Statement-I is incorrect but Statement-II is correct<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Answer: (c) Statement-I is correct but Statement-II is incorrect<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"carbon-markets\">Carbon Markets<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Carbon markets are considered\u00a0<strong>one of the most widespread tools in the fight against climate change.<\/strong>\u00a0In a nutshell,\u00a0<strong>carbon markets are trading systems<\/strong>\u00a0in which carbon credits are sold and bought.\n<ul class=\"wp-block-list\">\n<li>Companies or individuals can use carbon markets&nbsp;<strong>to compensate for their greenhouse gas emissions<\/strong>&nbsp;by purchasing carbon credits from entities that remove or reduce greenhouse gas emissions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Carbon markets&nbsp;<strong>work on the principle of carbon pricing, which aims to put a financial value on carbon dioxide (CO2) emissions<\/strong>.<\/li>\n\n\n\n<li>The basic idea is to create a market for trading carbon credits or permits, where companies or entities that emit greenhouse gases can buy or sell these permits.<\/li>\n\n\n\n<li>The objective of&nbsp;<strong>carbon markets is to create economic incentives for reducing greenhouse gas emissions<\/strong>. Companies that can reduce their e<strong>missions more efficiently and at a lower cost can sell their excess permits to those who find it more expensive to reduce emissions<\/strong>.<\/li>\n\n\n\n<li>This creates a financial incentive for companies&nbsp;<strong>to adopt cleaner technologies, improve energy efficiency, and reduce their carbon footprint.<\/strong><\/li>\n\n\n\n<li>Carbon markets&nbsp;<strong>provide a flexible and market-driven approach to emission reduction<\/strong>. By putting a price on carbon, they<strong>&nbsp;encourage the adoption of cleaner technologies, promote investments in renewable energy<\/strong>, and incentivize emission reduction measures across various sectors of the economy.<\/li>\n\n\n\n<li>It is&nbsp;<strong>not accurate to say that carbon markets transfer resources from the private sector to the State<\/strong>. In fact,&nbsp;<strong>carbon markets operate on the principle of creating a market-based mechanism where the private sector can participate in emissions trading&nbsp;<\/strong>and take responsibility for their carbon emissions.<\/li>\n\n\n\n<li>There are broadly two types of carbon markets:\u00a0<strong>compliance and voluntary.&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Compliance markets<\/strong>&nbsp;are created as a result of any national, regional and\/or international policy or regulatory requirement.<\/li>\n\n\n\n<li><strong>Voluntary carbon markets<\/strong>\u00a0\u2013 national and international \u2013 refer to the issuance, buying and selling of carbon credits, on a voluntary basis.\n<ul class=\"wp-block-list\">\n<li>The current supply of voluntary carbon credits comes mostly from private entities that develop carbon projects, or governments that develop programs certified by carbon standards that generate emission reductions and\/or removals.\n<ul class=\"wp-block-list\">\n<li>Demand comes from private individuals that want to compensate for their carbon footprints, corporations with corporate sustainability targets, and other actors aiming to trade credits at a higher price to make a profit.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Statement-I: Carbon markets are likely to be one of the most widespread tools in the fight against climate change.Statement-II: Carbon markets transfer resources from the private sector to the State. Which one of the following is correct in respect of the above statements? Answer: (c) Statement-I is correct but Statement-II is incorrect Carbon Markets<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[50],"class_list":["post-1656","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-50"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian Economy"}],"years":[{"value":50,"label":"2023"}]},"featured_image_src_large":false,"author_info":{"display_name":"LotusArise","author_link":"https:\/\/lotusarise.com\/qna\/author\/team-lotusarise"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0},{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1}],"tag_info":[{"term_id":38,"name":"Indian Economy","slug":"indian-economy","term_group":0,"term_taxonomy_id":38,"taxonomy":"post_tag","description":"","parent":0,"count":225,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1656","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=1656"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1656\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=1656"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=1656"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=1656"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=1656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}