Passage

Passage - 4 Climate change is a complex policy issue with major implications in terms of finance. All actions to address climate change ultimately involve costs. Funding is vital for countries like India to design and implement adaptation and mitigation plans and projects. Lack of funding is a large impediment to implementing adaptation plans. The scale and magnitude of the financial support required by developing countries to enhance their domestic mitigation and adaptation actions are a matter of intense debate in the multilateral negotiations under the United Nations Framework Convention on Climate Change (UNFCCC). The Convention squarely puts the responsibility for provision of financial support on the developed countries, taking into account their contribution to the stock of greenhouse gases (GHGs) in the atmosphere. Given the magnitude of the task and the funds required, domestic finances are likely to fall short of the current and projected needs of the developing countries. Global funding through the multilateral mechanism of the Convention will enhance their domestic capacity to finance the mitigation efforts.

With regards to developing countries, it can be inferred from the passage that climate change is likely to have implications on their 1. domestic finances. 2. capacity for multilateral trade. Select the correct answer using the code given below :

(a) 1 only ✓ UPSC's answer
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Why the answer is (a)

• The passage explicitly states that 'domestic finances are likely to fall short of the current and projected needs' of developing countries due to the high costs of climate action.

• It highlights that funding is vital for implementing adaptation and mitigation plans, directly linking climate change to financial constraints.

• The text mentions that global funding through multilateral mechanisms is needed to enhance domestic capacity, reinforcing the impact on domestic finances.

• There is no mention of 'multilateral trade' in the passage; the term 'multilateral' is used only in the context of UNFCCC negotiations and funding mechanisms.

• Therefore, only statement 1 is supported by the text, making option (a) the correct inference.

Why the other options are wrong

(b) 2 only: The passage does not mention any impact on the capacity for multilateral trade.
(c) Both 1 and 2: Statement 2 regarding multilateral trade is not supported by the passage.
(d) Neither 1 nor 2: Statement 1 is explicitly supported by the passage, so 'neither' is incorrect.

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2015, held on 23 August 2015. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.