Questions & explanations
1. With reference to India's Carbon Credit Trading Scheme (CCTS) 2023, consider the following statements: 1. It has been notified under the Energy Conservation Act, 2001. 2. The scheme is administered by the Bureau of Energy Efficiency (BEE). Which of the above statements is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer: (c) Both 1 and 2
Statement 1 is correct: CCTS 2023 was notified under the Energy Conservation Act 2001. Statement 2 needs care: the CCTS allows trading of carbon credits from both obligated and voluntary sectors, including renewable energy. Statement 2 is broadly correct. Statement 3 is incorrect: BEE is the administrator of the Energy Conservation Act's designated consumers framework, but the CCTS 2023 was notified by the Ministry of Environment, Forest and Climate Change (MoEFCC), not BEE directly. Wait — reviewing: the CCTS 2023 was notified by the Ministry of Power (not MoEFCC) under the Energy Conservation Act. BEE functions under the Ministry of Power and is the implementing agency. Given this, Statement 3 is correct in that BEE administers the scheme. So Statements 1 and 3 are correct = option (b). But then all three would be correct. Careful re-reading: Statement 3 says 'administered by BEE' — this is correct per the CCTS framework. Statement 2 says 'allows trading of carbon credits from renewable energy projects' — this is also correct since renewable energy developers can generate carbon cr
2. With reference to the Loss and Damage Fund established at COP27, consider the following statements:
1. The fund was formally established at COP27 in Sharm El-Sheikh.
2. The fund is managed by the World Bank as an interim host.
3. All countries, including developing nations, are expected to contribute voluntarily.
Which of the above statements is/are correct?
- (a) 1 only
- (b) 1 and 2 only
- (c) 2 and 3 only
- (d) 1, 2 and 3
Answer: (b) 1 and 2 only
Statement 1 is correct: the Loss and Damage Fund was formally established at COP27 in Sharm El-Sheikh. Statement 2 is correct: the World Bank was designated as the interim host/trustee for the fund. Statement 3 needs scrutiny: 'All countries, including developing nations, are expected to contribute voluntarily' — while the fund is open to contributions from all countries voluntarily, the primary obligation/expectation is on developed countries. However, the fund IS open to voluntary contributions from any country. If 'expected to contribute' implies obligation, it's misleading; but as a factual statement that voluntary contributions are open to all countries including developing nations, it is true. Given that Statement 3's accuracy is ambiguous ('expected to contribute' implies social pressure not legal obligation), the safest defensible answer covering unambiguous correct statements is 1 and 2 = option (b).
3. With reference to climate finance commitments under the Paris Agreement, consider the following statements:
1. Developed countries committed to mobilizing $100 billion per year by 2020 to support climate action in developing countries.
2. The commitment includes both public and private finance.
3. The $100 billion target was fully achieved by 2022.
Which of the above statements is/are correct?
- (a) 1 and 2 only
- (b) 2 and 3 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
Answer: (d) 1, 2 and 3
Statement 1 is correct: developed countries committed to $100 billion per year by 2020 under the Copenhagen Accord (2009) and Paris Agreement. Statement 2 is correct: the commitment includes both public and private finance. Statement 3 is incorrect: the $100 billion goal was NOT fully achieved by 2022 — OECD data shows it was first met in 2022 but only marginally, and many assessments indicate it was not fully met by 2020. More precisely, OECD reported the target was first met in 2022 ($115.9bn). Statement 3 as worded 'fully achieved by 2022' is contested — OECD says $115.9bn was mobilised in 2022, meaning it WAS met in 2022. If we accept the OECD 2022 figure, then Statement 3 could be considered correct. But 'fully achieved' implies clean attainment which is disputed. Given ambiguity, the safest defensible answer is 1 and 2 only = option (a).
4. With reference to Sovereign Green Bonds (SGrBs) issued by India in 2023, consider the following statements:
1. The proceeds from SGrBs are exclusively used for government expenditure on green projects as defined in the Green Bond Framework.
2. India issued its first Sovereign Green Bonds in January 2023, raising ₹16,000 crore.
3. The funds raised through SGrBs cannot be used for projects involving fossil fuel energy or nuclear power.
Which of the above statements is/are correct?
- (a) 1 and 2 only
- (b) 2 and 3 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
Answer: (c) 1 and 3 only
Statement 1 is correct: SGrB proceeds are used exclusively for eligible green projects as defined in the Green Bond Framework. Statement 2 needs verification: India's first SGrBs were issued in two tranches — ₹8,000 crore in January 2023 and ₹8,000 crore in February 2023, totalling ₹16,000 crore in FY2022-23. The statement 'raising ₹16,000 crore' is correct for the full FY2022-23 issuance, but the January 2023 tranche alone raised ₹8,000 crore. Statement 2 as worded ('India issued its first Sovereign Green Bonds in January 2023, raising ₹16,000 crore') conflates the January tranche (₹8,000 crore) with the full-year total. This makes Statement 2 inaccurate. Statement 3 is correct: the Green Bond Framework excludes fossil fuel energy and nuclear power. So Statements 1 and 3 are correct = option (c).
5. Assertion (A): India has announced a mandate of 1% blending of Sustainable Aviation Fuel (SAF) for international flights by 2027.
Reason (R): The International Civil Aviation Organization (ICAO) has set a global goal of carbon-neutral growth from 2020, and SAF is a key mitigation measure.
Select the correct answer using the codes below:
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true but R is not the correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.
- (a) Both A and R are true and R is the correct explanation of A.
- (b) Both A and R are true but R is not the correct explanation of A.
- (c) A is true but R is false.
- (d) A is false but R is true.
Answer: (a) Both A and R are true and R is the correct explanation of A.
Assertion A states India has announced a mandate of 1% SAF blending for international flights by 2027. The NPB 2022 amendment included SAF as a biofuel; a 1% mandate from 2027 has been referenced in policy discussions but is not fully mandated in the same way as E20. For the purposes of this question, let's treat A as true (the policy direction exists). Reason R is true: ICAO's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) targets carbon-neutral growth from 2020, and SAF is a key tool. However, R does not correctly explain A — India's SAF mandate stems from its own NPB amendment and aviation decarbonisation goals, not solely from ICAO's CORSIA target. Both A and R are true but R is not the correct explanation of A. Answer: (b).
6. Consider the following statements about India's Panchamrit commitments:
1. The target of 500 GW non-fossil energy capacity by 2030 includes large hydro and nuclear power.
2. The 50% renewable energy target is based on installed capacity, not actual generation.
3. The 1 billion tonnes emission reduction is relative to India's projected emissions without the commitment.
Which of the above statements is/are correct?
- (a) 1 and 2 only
- (b) 2 and 3 only
- (c) 1, 2, and 3
- (d) 1 only
Answer: (c) 1, 2, and 3
Statement 1: The 500 GW non-fossil energy target includes large hydro and nuclear — this is debated. India's official Panchamrit says '500 GW non-fossil fuel based energy capacity', which by definition includes large hydro and nuclear. However, some interpretations consider only renewables. This is ambiguous. Statement 2: The 50% renewable energy target in India's NDC is based on installed electricity capacity (not actual generation) — this is correct. Statement 3: The 1 billion tonne emission reduction is relative to India's projected (business-as-usual) emissions without the commitment — this is correct. Given Statement 1's ambiguity, the safer defensible answer includes Statements 2 and 3 as clearly correct, making (b) the most defensible answer.
7. Under the SATAT scheme, which of the following is promoted?
- (a) Ethanol production from sugarcane
- (b) Compressed Bio-Gas (CBG) production from organic waste
- (c) Biodiesel production from jatropha
- (d) Sustainable Aviation Fuel from algae
Answer: (b) Compressed Bio-Gas (CBG) production from organic waste
SATAT (Sustainable Alternative Towards Affordable Transportation) is an initiative launched in 2018 by the Ministry of Petroleum and Natural Gas to promote Compressed Bio-Gas (CBG) as a clean transport fuel. CBG is produced from various organic waste sources such as agricultural residue, cattle dung, municipal solid waste, and sewage treatment plant waste. The scheme aims to set up 5000 CBG plants by 2023-24 (later revised) and supports entrepreneurs with financial incentives and market linkages. Ethanol production (a) falls under the Ethanol Blending Programme, biodiesel from jatropha (c) is promoted under the National Biodiesel Mission, and SAF from algae (d) is still at research stage and not directly under SATAT.
8. With respect to the evolution of India’s climate commitments post-2015, consider the following statements:
1. India’s updated NDC in 2022 included a target to achieve 50% cumulative electric power installed capacity from non-fossil sources by 2030.
2. India announced its net-zero emissions target by 2070 at COP26.
3. India’s updated NDC includes a target to reduce emissions intensity of GDP by 45% by 2030 from 2005 levels.
Which of the statements given above is/are correct?
- (a) 1 and 2 only
- (b) 2 and 3 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
Answer: (d) 1, 2 and 3
India submitted its updated Nationally Determined Contribution (NDC) in August 2022, formalizing several key climate commitments. Statement 1 is correct: The updated NDC (2022) includes the target to achieve 50% cumulative electric power installed capacity from non-fossil sources by 2030. This commitment was initially announced by India at COP26 in November 2021. Statement 2 is correct: India announced its net-zero emissions target by 2070 at COP26 in November 2021. Statement 3 is correct: The updated NDC (2022) also includes the target to reduce the emissions intensity of its GDP by 45% by 2030 from 2005 levels. Therefore, all three statements are factually accurate regarding India's climate commitments post-2015.
9. Consider the following statements about global climate finance taxonomies:
1. The EU taxonomy includes a 'transition' category for activities that are not fully green but contribute to emission reductions.
2. China's green bond taxonomy excludes fossil fuel projects entirely.
3. India's draft taxonomy includes a 'green' and 'transition' category.
Which of the statements given above is/are correct?
- (a) 1 and 2 only
- (b) 2 and 3 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
Answer: (d) 1, 2 and 3
Statement 1 is correct: the EU taxonomy includes a 'transition' category for activities not yet fully sustainable. Statement 2 is false: China's updated Green Bond Catalogue (2021) does exclude 'clean coal' and most fossil fuel projects, but historically it did not; the 2021 version is the more accurate reference and does exclude fossil fuels — however this is a nuanced point; the more clearly verifiable fact is that earlier Chinese standards included 'clean coal', so statement 2 is contestable, but as of the 2021 revision, fossil fuels were removed. Statement 3 is correct: India's draft taxonomy includes both 'green' and 'transition' categories. Statements 1 and 3 are clearly correct, making (c) the right answer.
10. Consider the following scenario: A company in India reduces its carbon emissions by installing renewable energy capacity and wants to sell the resulting carbon credits. Under the Carbon Credit Trading Scheme (CCTS) notified in 2023, which of the following best describes the regulatory framework?
- (a) The Bureau of Energy Efficiency (BEE) will issue carbon credits directly to the company.
- (b) The company can trade credits on a voluntary carbon market without any government oversight.
- (c) The scheme establishes a domestic carbon market with obligated entities and tradable carbon credit certificates.
- (d) Carbon credits can only be sold to foreign buyers.
Answer: (c) The scheme establishes a domestic carbon market with obligated entities and tradable carbon credit certificates.
The Carbon Credit Trading Scheme (CCTS) 2023, notified by the Ministry of Power, establishes a domestic carbon market in India. It identifies obligated entities (e.g., high-emission industries) that must meet emission intensity targets. These entities can trade Carbon Credit Certificates (CCCs) with others. The Bureau of Energy Efficiency (BEE) is the administrator but does not directly issue credits to all companies; credits are generated through approved methodologies and traded on the market. The market is not purely voluntary for obligated entities; it is a compliance market. Credits can be sold domestically, not necessarily only to foreign buyers. Hence, option (c) best describes the framework.
11. Which of the following is a financial incentive scheme to support second-generation (2G) ethanol projects?
- (a) SATAT
- (b) Pradhan Mantri JI-VAN Yojana
- (c) National Policy on Biofuels
- (d) Ethanol Blending Programme
Answer: (b) Pradhan Mantri JI-VAN Yojana
Pradhan Mantri JI-VAN Yojana (Jaiv Indhan Vatavaran Anukool Fasal awas Paudh) is a central scheme launched in 2019 to provide financial support for setting up second-generation (2G) ethanol projects using lignocellulosic biomass. The scheme offers viability gap funding (VGF) to eligible projects, with a total outlay of Rs. 1,969 crore. It aims to reduce dependence on fossil fuels and promote the use of agricultural waste. SATAT (a) focuses on Compressed Bio-Gas, not ethanol. The National Policy on Biofuels (c) sets the framework but is not a direct financial incentive scheme. The Ethanol Blending Programme (d) mandates blending targets but does not provide direct financial support for 2G projects.
12. Which of the following statements about India's climate commitments under the Paris Agreement is/are correct? 1. India has committed to reducing emissions intensity of its GDP by 45% by 2030 from 2005 levels. 2. India’s NDC includes a target to install 500 GW of non-fossil fuel capacity by 2030. 3. India has pledged to achieve net-zero emissions by 2050. Select the correct answer using the code below.
- (a) 1 and 2 only
- (b) 2 and 3 only
- (c) 1 only
- (d) 1, 2 and 3
Answer: (c) 1 only
Statement 1 is true — India's 2022 NDC does include the 45% emissions intensity reduction target. Statement 2 says 'target to install 500 GW of non-fossil fuel capacity by 2030' — the formal 2022 NDC specifies '50% cumulative electric power installed capacity from non-fossil fuel', not a specific 500 GW figure (500 GW was announced as a domestic target but is not specified as such in the formal UNFCCC NDC document). Statement 3 is false — India targets net-zero by 2070, not 2050. Since Statement 2 as worded refers to a government announcement not precisely matching the formal NDC text, and Statement 3 is clearly false, only Statement 1 is unambiguously correct. The correct answer is (c) 1 only.