Which of the following statements about CBAM (Carbon Border Adjustment Mechanisms) is/are correct? 1. These are an emerging set of trade policy tools to allow movement of carbon-intensive economic activity from a jurisdiction having less stringent climate policy to a jurisdiction having stringent climate policy 2. These are meant to increase the environmental effectiveness of climate policies Select the answer using the code given below:
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
Correct answer
Explanation
The correct answer is B, 2 only. A carbon border adjustment exists to stop carbon-intensive activity from moving out of a strict jurisdiction, not to help it move, and its aim is to make climate policy work better.
When one region prices carbon heavily, its factories may shift to places with weak rules and send their goods back, so global emissions do not fall. This is called carbon leakage. A CBAM puts a charge on imports of carbon-intensive goods such as steel, cement, aluminium and fertilisers equal to the carbon price a domestic producer would pay. The European Union's CBAM is the best-known example. By removing the advantage of polluting elsewhere, it protects the environmental effectiveness of the home climate policy, which is what statement 2 says.
A is wrong because statement 1 reverses the purpose: CBAM prevents leakage towards lax jurisdictions. C is wrong because statement 1 is false. D is wrong because statement 2 is correct.
Exam tip: CBAM = a carbon price on imports to stop carbon leakage.
Practice Questions
View allIn India, if a species of tortoise is declared protected under Schedule I of the Wildlife (Protection) Act, 1972, what does it imply ?
- A.It enjoys the same level of protection as the tiger.
- B.It no longer exists in the wild, a few individuals are under captive protection; and now it is impossible to prevent its extinction.
- C.It is endemic to a particular region of India.
- D.Both (b) and (c) stated above are correct in this context.
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Schedule I lists the animals that get the highest level of legal protection in India, and the tiger is one of them.
Read the full explanation →"Momentum for Change : Climate Neutral Now" is an initiative launched by
- A.The Intergovernmental Panel on Climate Change
- B.The UNEP Secretariat
- C.The UNFCCC Secretariat
- D.The World Meteorological Organization
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Both 'Momentum for Change' and 'Climate Neutral Now' are initiatives of the secretariat of the UN Framework Convention on Climate Change, based in Bonn.
Read the full explanation →Consider the following statements :
1. Most of the world's coral reefs are in tropical waters.
2. More than one-third of the world's coral reefs are located in the territories of Australia, Indonesia and Philippines.
3. Coral reefs host far more number of animal phyla than those hosted by tropical rainforests.
Which of the statements given above is/are correct ?
- A.1 and 2 only
- B.3 only
- C.1 and 3 only
- D.1, 2 and 3
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All three statements about coral reefs are correct. Reef-building corals need warm, clear, shallow water, roughly between 20 °C and 30 °C, so almost all reefs lie in the tropics between about 30° N and 30° S. Indonesia, Australia and the Philippines together hold well over a third of the…
Read the full explanation →Consider the following statements :
1. The Sustainable Development Goals were first proposed in 1972 by a global think tank called the 'Club of Rome'.
2. The Sustainable Development Goals have to be achieved by 2030.
Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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The Sustainable Development Goals are to be met by 2030, but they were not proposed by the Club of Rome in 1972.
Read the full explanation →The Partnership for Action on Green Economy (PAGE), a UN mechanism to assist countries transition towards greener and more inclusive economies, emerged at
- A.The Earth Summit on Sustainable Development 2002, Johannesburg
- B.The United Nations Conference on Sustainable Development 2012, Rio de Janeiro
- C.The United Nations Framework Convention on Climate Change 2015, Paris
- D.The World Sustainable Development Summit 2016, New Delhi
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PAGE was launched in 2013 as a direct response to the call made at the Rio+20 conference of June 2012, whose outcome document, 'The Future We Want', recognised the green economy as a tool for sustainable development and poverty eradication.
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