UPSC Previous Year Question | Prelims GS | 2023

Consider the following statements: Statement-I: Carbon markets are likely to be one of the most widespread tools in the fight against climate change. Statement-II: Carbon markets transfer resources from the private sector to the State. Which one of the following is correct in respect of the above statements?

  1. Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
  2. Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
  3. Statement-I is correct but Statement-II is incorrect
  4. Statement-I is incorrect but Statement-II is correct

Answer

Correct Answer

Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

Explanation

Carbon markets are expected to be widespread climate tools (Statement-I true) and they do transfer resources, including from private sector participants (Statement-II can be considered true in a general sense), but Statement-II does not explain why carbon markets are widespread tools against climate change.

Topics: carbon markets, carbon pricing, climate change, environment