QUESTION 10
GS3
12.5 marks
Should the pursuit of carbon credits and clean development mechanisms set up under UNFCCC be maintained even though there has been a massive slide in the value of a carbon credit? Discuss with respect to India’s energy needs for economic growth.
WRITE IN
9 min
200 words
What the examiner wants
Discuss whether India should pursue CDM and carbon credits despite price collapse, given energy needs.
DiscussExplain the different sides of the issue, use evidence, and finish with a balanced view.
Demand-wise check
- 1CDM context: Kyoto Protocol mechanism letting developing-country projects sell CERs; India was the second-largest host after China; prices collapsed after 2012 due to EU demand fall and oversupply≈35 words
- 2For continuing: CDM built project-level MRV capacity, brought finance to wind, solar, biomass, efficiency; carbon markets revived under Paris Article 6 and a domestic scheme; co-benefits (energy security, cleaner air) do not depend on credit price≈35 words
- 3Against: low returns do not cover transaction costs; India's growing energy demand still relies on coal; uncertainty over transition of old CDM credits≈35 words
- 4Way forward: treat credits as a bonus, not the driver; align with NDC targets (500 GW non-fossil by 2030), PAT scheme and Carbon Credit Trading Scheme≈35 words
Open in about 30 words and close in about 30.
Answer plan
CDM explainedPrice slideArguments for and againstIndia's pathConclusion
Where marks usually go
- Not linking to India's energy needs
- Ignoring Paris Agreement Article 6
Draw this
- Graph: CER prices 2008-2014
Value addition
- LawCarbon Credit Trading Scheme notified in 2023 under the Energy Conservation (Amendment) Act 2022.Ministry of Power, 2023
- ExampleCER prices crashed below 1 euro in 2012.Carbon market data
Mapped topper copies
Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.
- Aniket Ranjan · AIR 48 · Page 41 ↗Reviewed PYQ reference
- Shakti Dubey · AIR 1 · Page 41 ↗Same syllabus reference
- Aniket Ranjan · AIR 48 · Page 15 ↗Same syllabus reference
- Shakti Dubey · AIR 1 · Page 17 ↗Same syllabus reference
Links open original public sources. MainsBuddy does not host these answer sheets.
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