UGC NET Questions (Paper – 1)

The CDM was designed to help industrialised countries meet part of their binding emission-reduction commitments by supporting projects in developing countries that reduce emissions relative to a baseline. Verified reductions generate Certified Emission Reductions (CERs) that can be used towards the investor’s targets. This mechanism also aims to support sustainable development in host countries, making this option accurate.

Option A:
Option A is correct as it captures both the investment in developing countries and the earning of tradable emission reduction units. It reflects the dual goals of cost-effective mitigation and development benefits.

Option B:
Option B is incorrect because CDM projects are not unconditional grants; they are specific, verified mitigation activities. Funding is tied to emission reduction outcomes.

Option C:
Option C is incorrect; CDM was designed to supplement, not replace, domestic action in developed countries. Parties were still expected to reduce emissions at home.

Option D:
Option D is incorrect since CDM favours low-carbon or renewable projects, not fossil-fuel expansion. Fossil-based projects would contradict its mitigation purpose.