Question

Regarding "carbon credits", which one of the following statements is not correct?
(a) The carbon credit system was ratified in conjunction with the Kyoto Protocol
(b) Carbon credits are awarded to countries or groups that have reduced greenhouse gases below their emission quota
(c) The goal of the carbon credit system is to limit the increase of carbon dioxide emission
(d) Carbon credits are traded at a price fixed from time to time by the United Nations Environment Programme

Answer 1

https://docs.google.com/document/d/1pRWPSbw4DAD86Iny1so9idS3i3Y1gnNlabGyOYIPrZo/edit?usp=sharing

Answer 2

The correct answer is option (d) Carbon credits are traded at a price fixed from time to time by the United Nations Environment Programme.

Carbon credits is a financial instrument that indicates the amount of carbon dioxide removed from the atmosphere from a project on reduction of emissions.

In trading, one Carbon emission ratio (CER) is equivalent to one metric tonne of CO2 emissions. These allowances are sold at market price. The international transfers are validated by United Nations Framework Convention on Climate Change.