Climate Change

Choose the Correct Answer

Correct Answer : Option a

Explanation
Carbon credits are permits that allow the owner to emit a certain amount of carbon dioxide or other greenhouse gases (GHGs). One credit allows the emission of one ton of carbon dioxide or the equivalent of other greenhouse gases. Carbon credits are also known as carbon allowances. Carbon credits can be issued to various entities, including countries, organizations, and industries, that engage in projects or activities that reduce or sequester carbon emissions, regardless of whether they have met overall emission reduction targets.
Other incorrect options:
Option (b): Carbon credits are not penalties; they are tradable certificates that represent a reduction in greenhouse gas emissions. Entities that reduce emissions can sell these credits to others seeking to offset their own emissions.

Option (c): The carbon credit system aims to reduce overall greenhouse gas emissions by providing economic incentives for emission reductions. It does not increase emissions; rather, it encourages entities to invest in cleaner technologies and practices.

Option (d): Carbon credits are not exclusively issued to countries that have met their emission reduction targets. They can be generated by various projects worldwide that achieve measurable emission reductions, regardless of the host country's overall progress toward its targets.