Q. With reference to Carbon Pricing consider the following statements:
1.It is the tax that will be imposed on the people for emitting greenhouse gases after a decade.
2.It works by capturing the external costs of emitting carbon.
3.It promotes the achievement of the Sustainable Development Goals by channeling finance to sustainable development projects.
Which of the statements given above are correct?
Statement 1: The statement is incorrect. Carbon pricing curbs greenhouse gas emissions by placing a fee on emitting and/or offering an incentive for emitting less to GHG producing industries.
Statement 2: Carbon pricing works by capturing the external costs of emitting carbon – i.e., the costs that the public pays, such as loss of property due to rising sea levels, or the health care costs associated with heat waves and droughts, etc. and placing that cost back at its source.
Statement 3: It promotes the achievement of the Sustainable Development Goals by channelling finance to sustainable development projects.
Source: Business Standard