2011 GS Paper I, all questions
UPSC Prelims 2011 · GS Paper I
Question 15: Environment and Ecology
Regarding "carbon credits", which one of the following statements is not correct ?
aThe carbon credit system was ratified in conjunction with the Kyoto Protocol
bCarbon credits are awarded to countries or groups that have reduced greenhouse gases below their emission quota
cThe goal of the carbon credit system is to limit the increase of carbon dioxide emission
dCarbon credits are traded at a price fixed from time to time by the United Nations Environment Programme
AnswerThe answer is (d).
Carbon credits grew out of the Kyoto Protocol, which set emission limits for developed countries. A country or firm that emits less than its quota earns credits that it can sell to those who exceed theirs, which gives a financial reason to cut greenhouse gas emissions. Prices are set by trading in the carbon market, as in the European emissions trading scheme, and are not fixed by UNEP. So the statement that is not correct is (d).
Why each option is right or wrong
- (a) Correct: the credit system came with the Kyoto Protocol.
- (b) Correct: credits go to those who emit below their quota.
- (c) Correct: the goal is to limit the increase in carbon dioxide emissions.
- (d) Not correct, hence the answer: credit prices come from market trading, not from UNEP.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2011, General Studies Paper I, Series A. The paper on upsc.gov.in.