Correct Option
The concept of carbon credit originated from the Kyoto Protocol, which was adopted in 1997 and entered into force in 2005. This international treaty operationalized the United Nations Framework Convention on Climate Change (UNFCCC) by setting binding emission reduction targets for industrialized countries. To facilitate these targets, the Protocol introduced flexible market mechanisms, including:
- Emissions Trading (ET)
- Clean Development Mechanism (CDM)
- Joint Implementation (JI)
Under these mechanisms, a carbon credit represents one tonne of carbon dioxide (CO₂) equivalent reduced or sequestered. These credits can be earned by undertaking projects that reduce greenhouse gas emissions and then traded to offset emissions or sold to other entities, thereby providing an economic incentive for emission reduction.
Incorrect Options
- Earth Summit, Rio de Janeiro (1992): This summit led to the adoption of the United Nations Framework Convention on Climate Change (UNFCCC) and Agenda 21. While it established the foundational framework for international climate action, it did not specifically introduce the carbon credit mechanism.
- Montreal Protocol (1987): This international treaty is aimed at protecting the ozone layer by phasing out the production of ozone-depleting substances (ODS) such as chlorofluorocarbons (CFCs) and halons. It is unrelated to greenhouse gas emissions or carbon credits.
- G-8 Summit, Heiligendamm (2007): This summit of the Group of Eight (G-8) nations addressed various global issues, including climate change, but it did not originate the concept of carbon credits. The carbon credit system was already established under the Kyoto Protocol.