UPSC Prelims Practice Questions — Government notifies Greenhouse Gas Emission Intensity Targets for 208 more Carbon-intensive Industries

Q1. Under the Compliance Mechanism of the Carbon Credit Trading Scheme (CCTS), the term 'Obligated Entity' is most accurately defined as:

  • A. An emission-intensive industrial unit that is assigned a greenhouse gas emission intensity target which it is legally required to meet
  • B. A voluntary project developer that registers emission-reduction projects in order to be issued Carbon Credit Certificates
  • C. A financial intermediary licensed by the regulator to trade Carbon Credit Certificates on the power exchanges
  • D. A State-level agency responsible for verifying and validating the annual emission reports submitted by industries

Q2. With reference to the Carbon Credit Trading Scheme (CCTS) and its predecessor PAT scheme, consider the following statements: 1. Whereas the PAT scheme operated under the National Mission for Enhanced Energy Efficiency, the CCTS derives its statutory basis from the Energy Conservation (Amendment) Act, 2022. 2. The CCTS is administered by the Bureau of Energy Efficiency, the same agency that administered the PAT scheme. 3. Under the CCTS, the tradable instrument is the Energy Saving Certificate (ESCert), which is the same unit that was traded under the PAT scheme. Which of the statements given above is/are correct?

  1. Whereas the PAT scheme operated under the National Mission for Enhanced Energy Efficiency, the CCTS derives its statutory basis from the Energy Conservation (Amendment) Act, 2022.
  2. The CCTS is administered by the Bureau of Energy Efficiency, the same agency that administered the PAT scheme.
  3. Under the CCTS, the tradable instrument is the Energy Saving Certificate (ESCert), which is the same unit that was traded under the PAT scheme.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. Which one of the following sectors was covered under the first notification of GHG Emission Intensity targets (October 2025), rather than under the second notification of January 2026?

  • A. Petroleum Refineries
  • B. Chlor-Alkali
  • C. Textiles
  • D. Secondary Aluminium

Q4. The term 'Indian Carbon Market (ICM)', as operationalised through the Carbon Credit Trading Scheme, is best described as:

  • A. India's compliance carbon market in which designated obligated entities trade Carbon Credit Certificates to meet mandated GHG emission intensity targets
  • B. A purely voluntary platform on which Indian firms buy international carbon offsets to satisfy export requirements
  • C. The segment of Indian power exchanges dedicated to the trading of Renewable Energy Certificates
  • D. A bilateral carbon-trading arrangement operated under Article 6.2 of the Paris Agreement

Q5. Under the Compliance Mechanism of the CCTS, which one of the following is the tradable instrument issued to an obligated entity that outperforms its assigned GHG Emission Intensity target?

  • A. Energy Saving Certificate (ESCert)
  • B. Carbon Credit Certificate (CCC)
  • C. Renewable Energy Certificate (REC)
  • D. Certified Emission Reduction (CER)

Q6. With reference to the concept of GHG Emission Intensity (GEI) targets under the CCTS, consider the following statements: 1. GEI targets are expressed as emissions per unit of output produced by the entity. 2. An obligated entity that outperforms its GEI target is issued Carbon Credit Certificates. 3. An obligated entity that falls short of its GEI target may purchase Carbon Credit Certificates to meet compliance. 4. A GEI target imposes an absolute ceiling on the total quantity of emissions an entity may release in a year. Which of the statements given above is/are NOT correct?

  1. GEI targets are expressed as emissions per unit of output produced by the entity.
  2. An obligated entity that outperforms its GEI target is issued Carbon Credit Certificates.
  3. An obligated entity that falls short of its GEI target may purchase Carbon Credit Certificates to meet compliance.
  4. A GEI target imposes an absolute ceiling on the total quantity of emissions an entity may release in a year.
  • A. 1 only
  • B. 4 only
  • C. 2 and 3 only
  • D. 3 and 4

Q7. The Perform, Achieve and Trade (PAT) scheme, launched in 2012, was the flagship market-based energy-efficiency mechanism operating under which one of the following missions of the National Action Plan on Climate Change?

  • A. National Solar Mission
  • B. National Mission for Enhanced Energy Efficiency
  • C. National Mission on Strategic Knowledge for Climate Change
  • D. National Mission for a Green India

Q8. Comparing the PAT scheme with the CCTS compliance mechanism, consider the following statements: 1. Participating industrial units were termed 'Designated Consumers' under PAT, whereas they are termed 'Obligated Entities' under the CCTS. 2. The first PAT cycle (2012-13 to 2014-15) covered Thermal Power Plants, a sector not among those notified under the CCTS compliance mechanism so far. 3. PAT targets were framed in terms of greenhouse gas emission intensity, identical to the metric used under the CCTS. Which of the statements given above is/are correct?

  1. Participating industrial units were termed 'Designated Consumers' under PAT, whereas they are termed 'Obligated Entities' under the CCTS.
  2. The first PAT cycle (2012-13 to 2014-15) covered Thermal Power Plants, a sector not among those notified under the CCTS compliance mechanism so far.
  3. PAT targets were framed in terms of greenhouse gas emission intensity, identical to the metric used under the CCTS.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q9. As per India's updated Nationally Determined Contribution submitted in 2022, by what percentage does India commit to reduce the emissions intensity of its GDP by 2030, relative to the 2005 level?

  • A. 33 to 35 per cent
  • B. 40 per cent
  • C. 45 per cent
  • D. 50 per cent

Q10. In the context of India's Nationally Determined Contributions, the term 'emissions intensity of GDP' refers to:

  • A. The volume of greenhouse gas emissions per unit of gross domestic product
  • B. The total absolute greenhouse gas emissions of the economy in a given year
  • C. The share of gross domestic product spent on climate mitigation and adaptation measures
  • D. The proportion of installed electric power capacity derived from non-fossil sources

Q11. Approval of the Detailed Procedure and the eight methodologies under the Offset Mechanism of the Carbon Credit Trading Scheme was granted by the Central Government in which year?

  • A. 2022
  • B. 2023
  • C. 2024
  • D. 2025

Q12. Comparing the Compliance and Offset mechanisms of the CCTS, consider the following statements: 1. The Compliance Mechanism applies to designated Obligated Entities, whereas the Offset Mechanism is open to Non-Obligated Entities. 2. Participation in the Offset Mechanism is voluntary, whereas meeting GEI targets under the Compliance Mechanism is mandatory. 3. Under the Offset Mechanism, only renewable energy projects are eligible to earn Carbon Credit Certificates. Which of the statements given above is/are correct?

  1. The Compliance Mechanism applies to designated Obligated Entities, whereas the Offset Mechanism is open to Non-Obligated Entities.
  2. Participation in the Offset Mechanism is voluntary, whereas meeting GEI targets under the Compliance Mechanism is mandatory.
  3. Under the Offset Mechanism, only renewable energy projects are eligible to earn Carbon Credit Certificates.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3