UPSC CSE Prelims
Question 39
Regarding "carbon credits", which one of the following statements is not correct ?
View correct answer and explanation
Correct answer: D
Correct Option: D
Explanation: Carbon credits under Kyoto-era mechanisms were tradable emissions units or verified reductions; prices were established by markets and trading arrangements, not fixed by UNEP.
Option-wise Analysis:
A: Incorrect - Broadly true: Kyoto Protocol mechanisms encouraged emissions-credit markets.
B: Incorrect - Broadly true: compliance frameworks issue/trade units for permitted emissions or verified reductions.
C: Incorrect - Correct aim: constrain net greenhouse-gas emissions, including CO₂.
D: Correct - Correct choice for “not correct”: UNEP does not periodically fix a uniform carbon-credit trading price.
Review Note: The expression “carbon credits awarded below quota” simplifies distinctions among allowances, offsets and certified reductions.