667: With reference to the cultivation of Khalif crops in India in the last five years, consider the following statements:
1. Area under rice cultivation is the highest.
2. Area under the cultivation of jowar is more than that of oilseeds.
3. Area of cotton cultivation is more than that of sugarcane.
4. Area under sugarcane cultivation has steadily decreased.
Which of the statements given above are correct?
(a) 1 and 3 only
(b) 2, 3 and 4 only
(c) 2 and 4 only
(d) 1, 2, 3 and 4
669: Regarding "carbon credits", which one of the following statements is not correct?
(a) The goal of the carbon credit system is to limit the increase of carbon dioxide emission
(b) Carbon credits are awarded to countries or groups that have reduced greenhouse gases below their emission quota
(c) Carbon credits are traded at a price fixed from time to time by the United Nations Environment Programme
(d) The carbon credit system was ratified in conjunction with the Kyoto Protocol
Explanation:
A carbon credit is a generic term for any tradable certificate or permit representing the right to emit one tonne of carbon dioxide.
The mechanism of carbon credit was formalized in the kyoto Protocol, an international agreement between more than 170 countries, and the market mechanisms were agreed through the subsequent Marrakesh Accords. The mechanism adopted was similar to the successful US Acid Rain Program to reduce some industrial pollutants. 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
Developed country can 'sponsor' a greenhouse gas reduction project in a developing country where the cost of greenhouse gas reduction project activities is usually much lower, but the atmospheric effect is globally equivalent. The developed country would be given credits for meting its emission reduction targets, while the developing country would receive the capital investment and clean technology or beneficial change in land use.
Carbon Credits can be traded privately, over the counter (OTC through a broker), or on the spot markets like any stock. The largest spot market for carbon credits is the European Climate Exchange (ECX), followed by the Chicago Climate Exchange (CCX) in the US.