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?
(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
(c) Statement-I is correct but Statement-II is incorrect
(d) Statement-I is incorrect but Statement-II is correct
Explanation:
The correct answer is (a).
Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
Statement-I states that carbon markets are likely to be one of the most widespread tools in the fight against climate change. This is because carbon markets can help to reduce greenhouse gas emissions by providing a financial incentive for businesses and individuals to reduce their emissions.
Statement-II states that carbon markets transfer resources from the private sector to the State. This is because businesses that emit greenhouse gases are required to purchase carbon credits, which are then sold to the State.
However, Statement-II is not the correct explanation for Statement-I. The reason why carbon markets are likely to be one of the most widespread tools in the fight against climate change is because they can help to reduce greenhouse gas emissions. The fact that carbon markets transfer resources from the private sector to the State is a secondary benefit.
In addition to reducing greenhouse gas emissions, carbon markets can also help to promote innovation in clean technologies. This is because businesses that are able to reduce their emissions can sell their carbon credits for a profit. This profit can then be used to invest in new clean technologies.
Overall, carbon markets are a promising tool in the fight against climate change. They can help to reduce greenhouse gas emissions, promote innovation in clean technologies, and transfer resources from the private sector to the State.
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