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Which of the following correctly describes the 'Common Risk Mitigation Mechanism', sometimes seen in the news?
- a)BASEL norms for the banking industry for the creation of an insurance facility for losses due to cyber frauds.
- b)International Monetary Fund established fund to provide disaster relief to developing and least developed countries.
- c)Pooled insurance facility to reduce solar projects' financial cost in member countries of International Solar Alliance.
- d)Credit insurance cover to improve the competitiveness of Indian agri-exports to OECD countries.
Correct answer is option 'C'. Can you explain this answer?
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Which of the following correctly describes the Common Risk Mitigation ...
Common Risk Mitigation Mechanism (CRMM) is a pooled insurance facility that aims to reduce the financial cost of solar projects in member countries of the International Solar Alliance (ISA). This mechanism was launched during the Founding Conference of the ISA in March 2018.
Under the CRMM, member countries of the ISA can come together to share the risks associated with solar power projects. The mechanism provides a platform for pooling the risks and resources of participating countries, thereby reducing the financial burden on individual countries. This enables the ISA member countries to leverage their collective strength and negotiate better financial terms for solar projects.
The CRMM operates through a risk-sharing arrangement, where participating countries contribute to a common insurance pool. The contributions are based on the capacity and risk profile of each country. The insurance pool provides coverage for certain risks associated with solar projects, such as delays in project implementation, non-performance of power purchase agreements, and payment defaults by off-takers.
By reducing the financial risks associated with solar projects, the CRMM aims to attract more investments in the renewable energy sector. It helps in improving the bankability of solar projects and facilitates access to affordable financing options. This, in turn, promotes the deployment of solar energy and contributes to the achievement of the objectives of the ISA, which is to facilitate the widespread adoption of solar energy and promote sustainable development.
The CRMM is an important initiative in the context of the global transition towards renewable energy. It addresses one of the key challenges faced by solar projects, which is the high cost of financing. By providing a mechanism to mitigate financial risks, the CRMM helps in making solar energy more affordable and accessible to developing countries. It also encourages international cooperation and collaboration in the renewable energy sector.
In conclusion, the Common Risk Mitigation Mechanism (CRMM) is a pooled insurance facility that aims to reduce the financial cost of solar projects in member countries of the International Solar Alliance (ISA). It operates through a risk-sharing arrangement and helps in improving the bankability of solar projects and attracting more investments in the renewable energy sector.
Under the CRMM, member countries of the ISA can come together to share the risks associated with solar power projects. The mechanism provides a platform for pooling the risks and resources of participating countries, thereby reducing the financial burden on individual countries. This enables the ISA member countries to leverage their collective strength and negotiate better financial terms for solar projects.
The CRMM operates through a risk-sharing arrangement, where participating countries contribute to a common insurance pool. The contributions are based on the capacity and risk profile of each country. The insurance pool provides coverage for certain risks associated with solar projects, such as delays in project implementation, non-performance of power purchase agreements, and payment defaults by off-takers.
By reducing the financial risks associated with solar projects, the CRMM aims to attract more investments in the renewable energy sector. It helps in improving the bankability of solar projects and facilitates access to affordable financing options. This, in turn, promotes the deployment of solar energy and contributes to the achievement of the objectives of the ISA, which is to facilitate the widespread adoption of solar energy and promote sustainable development.
The CRMM is an important initiative in the context of the global transition towards renewable energy. It addresses one of the key challenges faced by solar projects, which is the high cost of financing. By providing a mechanism to mitigate financial risks, the CRMM helps in making solar energy more affordable and accessible to developing countries. It also encourages international cooperation and collaboration in the renewable energy sector.
In conclusion, the Common Risk Mitigation Mechanism (CRMM) is a pooled insurance facility that aims to reduce the financial cost of solar projects in member countries of the International Solar Alliance (ISA). It operates through a risk-sharing arrangement and helps in improving the bankability of solar projects and attracting more investments in the renewable energy sector.
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Which of the following correctly describes the Common Risk Mitigation ...
- The Common Risk Mitigation Mechanism under the International Solar Alliance seeks to de-risk and reduce the financial cost of solar projects in ISA-member countries.
- CRMM will act as a pooled insurance with limited liability. Banks and multi-lateral institutions can contribute to the fund for a marginal premium. This will lower the cost of capital for developing renewable energy projects.
- The CRMM will offer a simple and affordable tool that will create a secure environment for private institutional investment in solar assets. The instrument will help diversify and pool risks on mutualized public resources and unlock significant investments.
- Indian corporates have already given $7 million to the CRMM. Coal India, Power Finance Corporation and ITPO (India Trade Promotion Organisation) will contribute another $1 million each to the CRMM.
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Which of the following correctly describes the Common Risk Mitigation Mechanism, sometimes seen in the news?a)BASEL norms for the banking industry for the creation of an insurance facility for losses due to cyber frauds.b)International Monetary Fund established fund to provide disaster relief to developing and least developed countries.c)Pooled insurance facility to reduce solar projects financial cost in member countries of International Solar Alliance.d)Credit insurance cover to improve the competitiveness of Indian agri-exports to OECD countries.Correct answer is option 'C'. Can you explain this answer?
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Which of the following correctly describes the Common Risk Mitigation Mechanism, sometimes seen in the news?a)BASEL norms for the banking industry for the creation of an insurance facility for losses due to cyber frauds.b)International Monetary Fund established fund to provide disaster relief to developing and least developed countries.c)Pooled insurance facility to reduce solar projects financial cost in member countries of International Solar Alliance.d)Credit insurance cover to improve the competitiveness of Indian agri-exports to OECD countries.Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following correctly describes the Common Risk Mitigation Mechanism, sometimes seen in the news?a)BASEL norms for the banking industry for the creation of an insurance facility for losses due to cyber frauds.b)International Monetary Fund established fund to provide disaster relief to developing and least developed countries.c)Pooled insurance facility to reduce solar projects financial cost in member countries of International Solar Alliance.d)Credit insurance cover to improve the competitiveness of Indian agri-exports to OECD countries.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following correctly describes the Common Risk Mitigation Mechanism, sometimes seen in the news?a)BASEL norms for the banking industry for the creation of an insurance facility for losses due to cyber frauds.b)International Monetary Fund established fund to provide disaster relief to developing and least developed countries.c)Pooled insurance facility to reduce solar projects financial cost in member countries of International Solar Alliance.d)Credit insurance cover to improve the competitiveness of Indian agri-exports to OECD countries.Correct answer is option 'C'. Can you explain this answer?.
Which of the following correctly describes the Common Risk Mitigation Mechanism, sometimes seen in the news?a)BASEL norms for the banking industry for the creation of an insurance facility for losses due to cyber frauds.b)International Monetary Fund established fund to provide disaster relief to developing and least developed countries.c)Pooled insurance facility to reduce solar projects financial cost in member countries of International Solar Alliance.d)Credit insurance cover to improve the competitiveness of Indian agri-exports to OECD countries.Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following correctly describes the Common Risk Mitigation Mechanism, sometimes seen in the news?a)BASEL norms for the banking industry for the creation of an insurance facility for losses due to cyber frauds.b)International Monetary Fund established fund to provide disaster relief to developing and least developed countries.c)Pooled insurance facility to reduce solar projects financial cost in member countries of International Solar Alliance.d)Credit insurance cover to improve the competitiveness of Indian agri-exports to OECD countries.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following correctly describes the Common Risk Mitigation Mechanism, sometimes seen in the news?a)BASEL norms for the banking industry for the creation of an insurance facility for losses due to cyber frauds.b)International Monetary Fund established fund to provide disaster relief to developing and least developed countries.c)Pooled insurance facility to reduce solar projects financial cost in member countries of International Solar Alliance.d)Credit insurance cover to improve the competitiveness of Indian agri-exports to OECD countries.Correct answer is option 'C'. Can you explain this answer?.
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