Carbon markets as a tool against climate change; carbon markets transfer resources from private to state
Question
Consider the following statements: 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?
Options
Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
Statement-I is correct but Statement-II is incorrect
Statement-I is incorrect but Statement-II is correct
Explanation
Statement-I is correct; carbon markets are heavily promoted globally to price emissions efficiently. Statement-II is incorrect; carbon markets primarily function by transferring financial resources between private sector entities (e.g., a heavy-emitting corporation buys carbon credits directly from a green energy startup), not primarily to the State.
Answer: (c).
Question details
Year
2023
Paper
GS Paper 1
Question
Q23
Subject
Environment
Sub-topic
Climate Change & Negotiations
Type
Assertion-Reason
Difficulty
Medium
Nature
Current-affairs-linked
Source hint
UNFCCC Paris Agreement Article 6 Carbon Markets
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