Question

Q. Regarding "Clean Development Mechanism‟ (CDM) which of the following statements is/are correct?

Select the correct answer using the code given below.

• A.
  1 only
• B.
  2 only
• C.
  Both 1 and 2
• D.
  Neither 1 nor 2

Answer 1

The correct option is C

Both 1 and 2
Explanation:

Statement 1 is correct: The Clean Development Mechanism (CDM) is one of the Flexible Mechanisms defined in the Kyoto Protocol (IPCC, 2007) that provides for the implementation of emissions reduction projects to generate Certified Emission Reduction units (CERs) which may be traded.

Statement 2 is correct: The Adaptation Fund is an international fund that finances projects and programs aimed at helping developing countries to adapt to the harmful effects of climate change. The Fund is financed in part by government and private donors, and also from a two per cent share of proceeds of Certified Emission Reductions (CERs) issued under the Protocol’s Clean Development Mechanism projects.