BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It represents the right of an Industry to emit certain quantity of Carbon Dioxide.
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Carbon Credits mechanism was formalized in Kyoto Protocol.
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Carbon Credits are currently traded on 5 exchanges across the globe.
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None of the above.
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Detailed explanation-1: -The prices of credits are primarily driven by the levels of supply and demand in the markets. Due to the differences in the supply and demand in different countries, the prices of the credits fluctuate. Hence, option 4 is not correct.
Detailed explanation-2: -The correct answer is It is the difference between the carbon emissions allowed and actually emitted carbon. Key Points. A carbon credit is a permit that allows the company that holds it to emit a certain amount of carbon dioxide or other greenhouse gases.
Detailed explanation-3: -A carbon credit (often called a carbon offset) is a credit for greenhouse emissions reduced or removed from the atmosphere by an emission reduction project, which can be used by governments, industry, or private individuals to compensate for the emissions they generate elsewhere.
Detailed explanation-4: -Carbon Credit Official Definition The main goal for the creation of carbon credits is the reduction of emissions of carbon dioxide and other greenhouse gases from industrial activities to reduce the effects of global warming.