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GS Paper IUPSC Prelims 2023
Climate Change & Global Warming
Question No. 97Interactive Test Mode
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Q97. 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?

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?

Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2023 • Environment and Ecology

Correct Answer: Option (B) — Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

Concept & Option Breakdown

Standard Reference Verified
  • Statement-I is correct: Carbon markets (both compliance cap-and-trade and voluntary offset markets) establish a price on carbon emissions and are universally recognized as one of the most widespread economic mechanisms to incentivize decarbonization globally.
  • Statement-II is correct: Through allowance auctions and statutory compliance fees in cap-and-trade schemes, carbon markets can transfer financial resources from private emitters to governments/the State (which are often redirected to public climate funds). However, facilitating inter-firm private emissions trading—rather than fiscal transfer to the state—is the underlying driver of why carbon markets are widespread tools, making Statement-II not the direct causal explanation of Statement-I.
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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2023 (Q97)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicEnvironment and Ecology → Climate Change & Global Warming
Official Answer KeyOption (B) — Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

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Frequently Asked Questions — UPSC Prelims 2023 Q97

What is the official answer for UPSC Prelims 2023 GS Paper I Question 97 (Environment and Ecology)?

The official UPSC answer key for this 2023 Environment and Ecology (Climate Change & Global Warming) question is Option (B): "Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2023 question belong to?

This question belongs to GS Paper I under the subject "Environment and Ecology" and micro-topic "Climate Change & Global Warming". You can explore all repeated questions from Climate Change & Global Warming in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Climate Change & Global Warming UPSC Prelims question using option elimination?

To solve Climate Change & Global Warming questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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