The Kyoto protocol that specify regulation on the emission of greenhouse gases. It defines a term known as “carbon credits”. The following statements pertain to carbon credits? (A) The mandatory limit of carbon credit for each country is directly proportional to its size and population. (B) One carbon credit defines the emission of one ton of carbon dioxide or equivalent. (C) Carbon credits are exchangeable among counters/industries. (D) An industry emitting higher than the prescribed limit can do so by purchasing carbon credits. Which of the above statements are true?

Question

The Kyoto protocol that specify regulation on the emission of greenhouse gases. It defines a term known as &ldquo;carbon credits&rdquo;. The following statements pertain to carbon credits? (A) The mandatory limit of carbon credit for each country is directly proportional to its size and population. (B) One carbon credit defines the emission of one ton of carbon dioxide or equivalent. (C) Carbon credits are exchangeable among counters/industries. (D) An industry emitting higher than the prescribed limit can do so by purchasing carbon credits. Which of the above statements are true? (A) (A) and (B) only (B) (B) and (D) only (C) (A), (B) and (D) only (D) (A), (C) and (D) only

Tardigrade Admin · Accepted Answer

According to carbon trading, one tonne of CO2 equivalent gases is equal to one carbon credit. These carbon credits were given by the Kyoto protocol, which turned into carbon emissions in market system. A carbon credit is purchased by a country when it emitted higher than the prescribed limit. Of course, a company can privately sell them in the international market to current market price. The UNFCCC validates each trade or sale.