UPSC Prelims Practice Questions — India Showcases Carbon Credit Trading Scheme and Renewable Energy Standards at WTO Trade and Environment Week 2026

Q1. With reference to India's Carbon Credit Trading Scheme (CCTS), 2023, which one of the following has been designated as the Administrator of the Scheme?

  • A. Bureau of Energy Efficiency
  • B. Grid Controller of India Limited
  • C. Central Electricity Regulatory Commission
  • D. Ministry of Environment, Forest and Climate Change

Q2. With reference to the Carbon Credit Trading Scheme (CCTS), 2023, consider the following sectors: 1. Cement 2. Sugar 3. Textile 4. Thermal Power Generation Which of the above sectors are NOT notified as Obligated Sectors under the CCTS?

  1. Cement
  2. Sugar
  3. Textile
  4. Thermal Power Generation
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 4 only
  • D. 3 only

Q3. Which of the following commitments are NOT part of India's Updated First Nationally Determined Contribution (NDC) communicated to the UNFCCC in August 2022?

  1. Reduction of emissions intensity of GDP by 45% by 2030 from 2005 level.
  2. About 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
  3. Installed non-fossil electric power capacity of 500 GW by 2030.
  4. Achieving net-zero emissions by 2070.
  • A. 1 and 2
  • B. 2 and 3
  • C. 3 and 4
  • D. 1, 3 and 4

Q4. India's commitment to achieve net-zero emissions by the year 2070 was announced for the first time by the Prime Minister at which one of the following international forums?

  • A. COP26 to the UNFCCC at Glasgow (2021)
  • B. COP21 to the UNFCCC at Paris (2015)
  • C. COP27 to the UNFCCC at Sharm El-Sheikh (2022)
  • D. United Nations Climate Action Summit at New York (2019)

Q5. The side-event titled 'Showcase of India's Carbon Credit Trading Scheme and Standardisation in Renewable Energy', held on World Environment Day 2026 at the WTO Trade and Environment Week in Geneva, was convened by which one of the following as the lead Indian ministry?

  • A. Ministry of Environment, Forest and Climate Change
  • B. Ministry of New and Renewable Energy
  • C. Ministry of Commerce and Industry
  • D. Ministry of External Affairs

Q6. Consider the following statements regarding the 2026 WTO Trade and Environment Week and India's participation in it: 1. The 2026 edition was the seventh in the series and was held over five days from 1 to 5 June 2026 at WTO headquarters in Geneva, as the 2025 edition had also been held in Geneva. 2. The 2026 edition featured public sessions organised by WTO members on themes ranging from climate change and biodiversity to plastics pollution and trade in environmental goods and services. 3. India's side-event held during the 2026 edition was scheduled on World Environment Day and showcased both the Carbon Credit Trading Scheme and standardisation efforts in renewable energy. Which of the statements given above are correct?

  1. The 2026 edition was the seventh in the series and was held over five days from 1 to 5 June 2026 at WTO headquarters in Geneva, as the 2025 edition had also been held in Geneva.
  2. The 2026 edition featured public sessions organised by WTO members on themes ranging from climate change and biodiversity to plastics pollution and trade in environmental goods and services.
  3. India's side-event held during the 2026 edition was scheduled on World Environment Day and showcased both the Carbon Credit Trading Scheme and standardisation efforts in renewable energy.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q7. With reference to India's Nationally Determined Contributions (NDCs) under the Paris Agreement and recent progress, consider the following statements:

  1. India crossed the milestone of 50% cumulative electric power installed capacity from non-fossil fuel sources in 2025, five years ahead of the 2030 NDC target.
  2. Under the Updated First NDC, India committed to reduce the emissions intensity of its GDP by 45% by 2030 from 2005 levels.
  3. India's original 2015 NDC had set a target of 40% cumulative electric power installed capacity from non-fossil fuel sources by 2030.
  4. The Cabinet-approved NDC for the period 2031-2035 enhances India's non-fossil installed capacity target to 75% by 2035.
  • A. 1, 2 and 3 only
  • B. 2 and 4 only
  • C. 1, 3 and 4 only
  • D. 1, 2, 3 and 4

Q8. India's Updated First Nationally Determined Contribution (NDC) — which enhanced the non-fossil installed electric capacity target to about 50% by 2030 — was communicated to the UNFCCC in which one of the following years?

  • A. 2015
  • B. 2020
  • C. 2022
  • D. 2023

Q9. With reference to the Perform, Achieve and Trade (PAT) scheme and the Renewable Energy Certificate (REC) mechanism, consider the following statements:

  1. While PAT issues Energy Saving Certificates (ESCerts) to industrial units that outperform their Specific Energy Consumption targets, RECs are issued to renewable energy generators at the rate of one certificate for every megawatt-hour of electricity injected into the grid.
  2. Both ESCerts under PAT and RECs are traded on Power Exchanges approved by the Central Electricity Regulatory Commission.
  3. Unlike the PAT scheme, which is administered by the Ministry of New and Renewable Energy, the REC mechanism is administered by the Bureau of Energy Efficiency.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q10. With reference to the implementation architecture of the Perform, Achieve and Trade (PAT) scheme, which of the following bodies are NOT assigned a role under the scheme?

  1. Bureau of Energy Efficiency (BEE)
  2. Central Electricity Regulatory Commission (CERC)
  3. Securities and Exchange Board of India (SEBI)
  4. Grid Controller of India (erstwhile POSOCO)
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 4
  • D. 3 only

Q11. With reference to the European Union's Carbon Border Adjustment Mechanism (CBAM), consider the following statements comparing its transitional and definitive phases: 1. During the transitional phase that began on 1 October 2023, only reporting obligations applied to in-scope importers, with no financial liability for embedded emissions. 2. From the start of the definitive phase on 1 January 2026, EU importers of in-scope goods are required to purchase and surrender CBAM certificates corresponding to embedded emissions. 3. The definitive phase, unlike the transitional phase, expanded CBAM's product coverage to include textiles, petrochemicals and refined petroleum products in addition to the original list.

  1. During the transitional phase that began on 1 October 2023, only reporting obligations applied to in-scope importers, with no financial liability for embedded emissions.
  2. From the start of the definitive phase on 1 January 2026, EU importers of in-scope goods are required to purchase and surrender CBAM certificates corresponding to embedded emissions.
  3. The definitive phase, unlike the transitional phase, expanded CBAM's product coverage to include textiles, petrochemicals and refined petroleum products in addition to the original list.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q12. At the commencement of its definitive phase on 1 January 2026, the European Union's Carbon Border Adjustment Mechanism (CBAM) covers how many product groups?

  • A. Four
  • B. Five
  • C. Six
  • D. Eight

Q13. Which of the following has been notified by India as the National Designated Authority for the Implementation of the Paris Agreement (NDAIAPA), empowered to approve projects for participation in international carbon markets under Article 6 of the Paris Agreement?

  • A. Bureau of Energy Efficiency under the Ministry of Power
  • B. Ministry of Environment, Forest and Climate Change
  • C. Ministry of External Affairs
  • D. NITI Aayog

Q14. Internationally Transferred Mitigation Outcomes (ITMOs), which India intends to leverage through bilateral arrangements such as the India–Japan Joint Crediting Mechanism, are governed under which provision of the Paris Agreement?

  • A. Article 4
  • B. Article 6.2
  • C. Article 6.4
  • D. Article 13

Q15. As per the Energy Conservation (Amendment) Act, 2022, the Energy Conservation and Sustainable Building Code is made applicable to office and residential buildings having a minimum connected load (in kilowatt) of:

  • A. 50
  • B. 100
  • C. 150
  • D. 500

Q16. Under which clause of Section 14 of the Energy Conservation Act, 2001 (as inserted by the Energy Conservation (Amendment) Act, 2022) is the Central Government empowered, in consultation with the Bureau of Energy Efficiency, to specify the Carbon Credit Trading Scheme?

  • A. Clause (s) of Section 14
  • B. Clause (u) of Section 14
  • C. Clause (w) of Section 14
  • D. Clause (y) of Section 14