What is the news-

India has decided to participate in one of the four cooperative work programmes initiated under the ‘Clean energy pillar’ of the US-led Indo Pacific Economic Framework (IPEF).
India will join the cooperative working group on carbon markets, with the Ministry of Power leading the initiative.

What are Carbon Markets?

Carbon markets, also known as emissions trading systems or cap-and-trade programs, are market-based mechanisms designed to reduce greenhouse gas emissions.
Article 6 of the Paris Agreement (2015) provides for the use of international carbon markets by countries to fulfil their Nationally Determined Contributions.
A regulatory authority, typically a government or regional organization, sets an overall limit or cap on the amount of greenhouse gases that can be emitted by covered entities within a specific jurisdiction or sector.
Entities get permits for emissions. They can trade these permits with others.
Entities must have enough permits to cover their emissions. If they don’t, they buy more.

It is a US-led initiative that aims to strengthen economic partnerships among participating countries to enhance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness in the Indo-Pacific region.
The IPEF was launched in 2021 with a dozen initial partners who together represent 40% of the world GDP.
The IPEF is NOT a Free Trade Agreement (FTA) but allows members to negotiate the parts they want to.

Trade that will include digital economy and emerging technology, labour commitments, the environment, trade facilitation, transparency and good regulatory practices, and corporate accountability, standards on cross-border data flow and data localisations;
Supply chain resilience to develop “a first-of-its-kind supply chain agreement” that would anticipate and prevent disruptions;
Clean energy and decarbonization will include agreements on “high-ambition commitments” such as renewable energy targets, carbon removal purchasing commitments, energy efficiency standards, and new measures to combat methane emissions; and
Fair Economy Agreement, with commitments to enact and enforce “effective tax, anti-money laundering, anti-bribery schemes in line with [American] values”.

Currently, India and 13 countries other located in the Pacific Ocean are its members: Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States, and Vietnam.

No market access or tariff reductions have been outlined in the IPEF, although experts say it can pave the way to trade deals.
It’s not a take-it-or-leave-it arrangement, like most multilateral trade deals are.
Since the IPEF is not a regular trade pact, the members so far are not obligated by all the four pillars despite being signatories.

Q.Regarding “carbon credits”, which one of the following statements is not correct? (2011)

The carbon credit system was ratified in conjunction with the Kyoto Protocol
Carbon credits are awarded to countries or groups that have reduced greenhouse gases below their emission quota
The goal of the carbon credit system is to limit the increase of carbon dioxide emission
Carbon credits are traded at a price fixed from time to time by the United Nations Environment Programme.

Regarding the Indo-Pacific Economic Framework (IPEF), consider the following statements:

How many of the given statements is/are correct?