Question

Regarding “carbon credits” which of the following statements is not correct?

• A. The carbon credits system was ratified in conjunction with Kyoto Protocol
• B. Carbon credits are awarded to those countries or groups who have reduced the green house gases below their emission quota
• C. The goal of carbon credit system is to reduce carbon dioxide emission
• D. Carbon credits are traded at a price fixed from time to time by the United Environment Programme

Answer 1

The Correct Option is D

The concept of "carbon credits" is an integral part of environmental strategies to mitigate greenhouse gas emissions. Let's examine the given statements to determine which one is incorrect:

1. The carbon credits system was ratified in conjunction with the Kyoto Protocol: This is correct. The Kyoto Protocol is an international treaty that was established in 1997, linking carbon credits with efforts to reduce emissions globally.
2. Carbon credits are awarded to those countries or groups who have reduced the greenhouse gases below their emission quota: This is correct. Carbon credits serve as a way to incentivize reducing emissions, rewarding those who maintain their emissions below set thresholds.
3. The goal of the carbon credit system is to reduce carbon dioxide emissions: This is correct. The primary aim is to combat climate change by reducing the levels of CO2 and other greenhouse gases in the atmosphere.
4. Carbon credits are traded at a price fixed from time to time by the United Environment Programme: This is incorrect. Carbon credit pricing is determined by market dynamics, rather than being fixed by the United Nations Environment Programme (UNEP). The prices fluctuate based on supply and demand in carbon markets globally.

Therefore, the statement that is not correct is: Carbon credits are traded at a price fixed from time to time by the United Environment Programme.