The concept of 'carbon credit' originated from
- (a)Earth Summit, Rio-de-Janeiro
- (b)Kyoto protocol
- (c)Montreal protocol
- (d)G - 8 Summit, Heiligendam
Correct — B, Kyoto Protocol. Tradable 'carbon credits' originated with the 1997 Kyoto Protocol under the UNFCCC, which put legally binding greenhouse-gas targets on developed (Annex-I) countries and created three market-based 'flexible mechanisms' to help them meet those targets cost-effectively: Emissions Trading, the Clean Development Mechanism (CDM) and Joint Implementation (JI). These mechanisms let one tonne of CO2-equivalent reduced or avoided be certified and traded as a credit — that is the carbon-credit system. So the concept originated from the Kyoto Protocol.
- (a)Earth Summit, Rio-de-Janeiro — Wrong — the 1992 Rio Earth Summit produced the UNFCCC (the parent framework), but it set no binding targets and created no tradable credits; the credit mechanism came later, at Kyoto.
- (c)Montreal protocol — Wrong — the Montreal Protocol (1987) phases out ozone-depleting substances (CFCs etc.); it deals with the ozone layer, not greenhouse-gas carbon credits.
- (d)G - 8 Summit, Heiligendam — Wrong — the 2007 G-8 summit at Heiligendamm discussed climate goals but did not create the carbon-credit system, which already existed under the 1997 Kyoto Protocol.
A carbon credit is a tradable permit representing one tonne of carbon-dioxide-equivalent that has been reduced, avoided or removed. The idea was institutionalised by the Kyoto Protocol (adopted 1997, in force 2005), which set binding emission caps for Annex-I nations and let them meet the caps flexibly by buying credits generated elsewhere — turning emission reductions into a market commodity.
Separate the treaties by their job: Rio 1992 = the UNFCCC framework (no binding cuts); Kyoto 1997 = binding targets + market mechanisms (where carbon credits are born); Montreal 1987 = ozone-layer substances, not carbon. The word 'originated' points to where the trading mechanism was actually created — Kyoto.
- Carbon credits originated under the Kyoto Protocol (adopted 1997, entered into force 16 Feb 2005).
- Kyoto's three flexible mechanisms: Emissions Trading, Clean Development Mechanism (CDM) and Joint Implementation (JI).
- 1 carbon credit = 1 tonne of CO2-equivalent reduced or avoided; CDM issues Certified Emission Reductions (CERs).
- The 1992 Rio Earth Summit created the UNFCCC framework; the Montreal Protocol (1987) protects the ozone layer.
The UNFCCC (Rio) set the frame, but tradable carbon credits originated at Kyoto via its three market mechanisms.
- Confusing the Montreal Protocol (ozone) with climate/carbon treaties
- Crediting the Rio Earth Summit (UNFCCC) with the carbon-credit mechanism — that came at Kyoto
UPPSC & UPSC repeatedly ask 'carbon credit / CDM / CER originated under which treaty' — the answer is the Kyoto Protocol; keep Rio (framework) and Montreal (ozone) distinct.
The concept of carbon credit originated from which one of the following?
- (a) Earth Summit, Rio de Janeiro
- (b) Kyoto Protocol
- (c) Montreal Protocol
- (d) G-8 Summit, Heiligendamm
Answer(b) Kyoto Protocol
Essentially the identical question with the same options and answer — UPSC's 2009 prelims asked exactly this, confirming carbon credit = Kyoto Protocol.
Consider the following statements: 1. Clean Development Mechanism (CDM) in respect of carbon credits is one of the Kyoto Protocol Mechanisms. 2. Under the CDM, the projects handled pertain only to the Annex-I countries. Which of the statements given above is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer(a) 1 only
Same concept — carbon credits and the CDM are Kyoto Protocol mechanisms (CDM projects run in developing, non-Annex-I countries).
Regarding "carbon credits", which one of the following statements is not correct?
- (a) The carbon credit system was ratified in conjunction with the Kyoto Protocol
- (b) Carbon credits are awarded to countries or groups that have reduced greenhouse gases below their emission quota
- (c) The goal of the carbon credit system is to limit the increase of carbon dioxide emission
- (d) Carbon credits are traded at a price fixed from time to time by the United Nations Environment Programme
Answer(d) Carbon credits are traded at a price fixed from time to time by the United Nations Environment Programme
Deepens the same topic — carbon credits arose with the Kyoto Protocol and are priced by markets, not fixed by UNEP.
- practice — not a real PYQ
The Clean Development Mechanism (CDM) is a feature of which of the following?
- (a)Montreal Protocol
- (b)Kyoto Protocol
- (c)Paris Agreement
- (d)Cartagena Protocol
Answer(b) Kyoto Protocol — the CDM is one of its three flexible market mechanisms.
- practice — not a real PYQ
One 'carbon credit' is generally equivalent to
- (a)one kilogram of carbon dioxide
- (b)one tonne of carbon dioxide equivalent
- (c)one tonne of carbon monoxide
- (d)one tonne of methane
Answer(b) one tonne of carbon dioxide equivalent — the standard unit of a carbon credit.