Q. Consider the following statements:
1.Voluntary carbon markets are created as a result of any national, regional and international policy or regulatory requirement.
2.Companies or individuals can use carbon markets to compensate for their greenhouse gas emissions.
3.Carbon Credit Trading Scheme aims to develop the Indian Carbon Market (ICM) with the objective to decarbonise the Indian economy by pricing the Green House Gas (GHG) emissions through the trading of Carbon Credit Certificates.
Which of the statements given above are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: B
Notes:

Explanation –

Statement 1 is incorrect. There are broadly two types of carbon markets: compliance and voluntary. Compliance markets are created as a result of any national, regional and/or international policy or regulatory requirement while Voluntary carbon markets refers to the issuance, buying and selling of carbon credits, on a voluntary basis.

Statement 2 and 3 are correct. Companies or individuals can use carbon markets to compensate for their greenhouse gas emissions. Carbon Credit Trading Scheme aims to develop the ICM with the objective to decarbonise the Indian economy by pricing the GHG emissions through the trading of Carbon Credit Certificates.

Source: ForumIAS