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?
The correct answer is (B) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
Explanation:
Statement I is correct: Carbon markets are likely to become one of the most widespread tools in the fight against climate change. Carbon markets, also known as emissions trading systems or cap-and-trade systems, place a price on carbon emissions. By creating economic incentives for reducing emissions, these systems allow entities to buy and sell carbon credits. This market-based approach has been adopted by many countries and regions as a key strategy for mitigating climate change. Statement II is correct: Carbon markets are designed to reduce greenhouse gas emissions by pricing carbon and enabling the buying and selling of carbon credits, which represent the right to emit a certain amount of greenhouse gases. Entities that emit less than their allotted limit can sell their excess credits to those exceeding their limit, facilitating a more efficient allocation of emission reduction efforts. While carbon markets involve financial transactions and may transfer resources between entities, both private and public, they primarily function to facilitate the exchange of emission allowances. However, Statement II is not the correct explanation for Statement I: The transfer of resources from the private sector to the state is not the reason why carbon markets are considered one of the most widespread tools in combating climate change. The main reason is the creation of economic incentives to reduce emissions.
हिंदी में प्रश्न एवं आदर्श उत्तर
निम्नलिखित कथनों पर विचार कीजिए :
कथन-I : ऐसी संभावना है कि कार्बन बाजार, जलवायु परिवर्तन से निपटने का एक सबसे व्यापक साधन हो जाए।
कथन-II : कार्बन बाजार संसाधनों को प्राइवेट सेक्टर से राज्य को हस्तांतरित कर देते हैं।
उपर्युक्त कथनों के बारे में, निम्नलिखित में से कौन-सा एक सही है?
सही उत्तर (B) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I है।
व्याख्या:
Statement I is correct: Carbon markets are likely to become one of the most widespread tools in the fight against climate change. Carbon markets, also known as emissions trading systems or cap-and-trade systems, place a price on carbon emissions. By creating economic incentives for reducing emissions, these systems allow entities to buy and sell carbon credits. This market-based approach has been adopted by many countries and regions as a key strategy for mitigating climate change. Statement II is correct: Carbon markets are designed to reduce greenhouse gas emissions by pricing carbon and enabling the buying and selling of carbon credits, which represent the right to emit a certain amount of greenhouse gases. Entities that emit less than their allotted limit can sell their excess credits to those exceeding their limit, facilitating a more efficient allocation of emission reduction efforts. While carbon markets involve financial transactions and may transfer resources between entities, both private and public, they primarily function to facilitate the exchange of emission allowances. However, Statement II is not the correct explanation for Statement I: The transfer of resources from the private sector to the state is not the reason why carbon markets are considered one of the most widespread tools in combating climate change. The main reason is the creation of economic incentives to reduce emissions.