Question

98. Regarding “carbon credits’’, which one of the following statements is not correct? [2011-I]

• A. a) The carbon credit system was ratified in conjunction with the Kyoto Protocol.
• B. b) Carbon credits are awarded to countries or groups that have reduced greenhouse gases below their emission quota.
• C. c) The goal of the carbon credit system is to limit the increase of carbon dioxide emission.
• D. d) Carbon credits are traded at a price fixed from time to time by the United Nations Environment Programme.

Answer 1

The correct option is D d) Carbon credits are traded at a price fixed from time to time by the United Nations Environment Programme.

Ans: d

Under the Kyoto Protocol, the 'caps' or quotas for Greenhouse gases for the developed Annex 1 countries are known as Assigned Amounts and are listed in Annex B. The quantity of the initial assigned amount is denominated in individual units, called Assigned amount units (AAUs), each of which represents an allowance to emit one metric tonne of carbon dioxide equivalent, and these are entered into the country's national registry.