Consider the following statements regarding carbon emission trading and carbon offset mechanisms:
1. Carbon Emission Trading is a "cap-and-trade" system where companies can buy or sell emission allowances within a set limit on total greenhouse gas emissions.
2. Carbon Offset Mechanisms allow companies to compensate for their emissions by investing in environmental projects that reduce or remove greenhouse gases from the atmosphere.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Question

Consider the following statements regarding carbon emission trading and carbon offset mechanisms:
1. Carbon Emission Trading is a "cap-and-trade" system where companies can buy or sell emission allowances within a set limit on total greenhouse gas emissions.
2. Carbon Offset Mechanisms allow companies to compensate for their emissions by investing in environmental projects that reduce or remove greenhouse gases from the atmosphere.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

ONLiNE UPSC · Accepted Answer

Statement 1 is correct: Carbon emission trading, also known as cap-and-trade, involves setting a maximum allowable level of emissions (cap). Companies receive or purchase emission allowances and can trade these permits, incentivizing reduction where it is most cost-effective.

Statement 2 is correct: Carbon offset mechanisms enable companies to balance their emissions by funding projects that either reduce greenhouse gases or enhance their removal from the atmosphere, such as afforestation or renewable energy projects.

Climate Change

Carbon Emission Trading and Carbon Offset Mechanisms

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M Question 1	⏱ 0
Consider the following statements regarding carbon emission trading and carbon offset mechanisms: 1. Carbon Emission Trading is a "cap-and-trade" system where companies can buy or sell emission allowances within a set limit on total greenhouse gas emissions. 2. Carbon Offset Mechanisms allow companies to compensate for their emissions by investing in environmental projects that reduce or remove greenhouse gases from the atmosphere. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2