2023 Economy - Environment Economics

Consider the following statements : Statement-I: Carbon markets are likely to be one of the most widespread tools in the fight against climate change. Statement-II: Carbon markets transfer resources from the private sector to the State. Which one of the following is correct in respect of the above statements?

• Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
• Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
• Statement-I is correct but Statement-II is incorrect
• Statement-I is incorrect but Statement-II is correct