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Consider the following statements:
Statement-I: Debt for Climate Swaps is an agreement where a creditor forgoes a portion of the debtor's foreign debt or provides debt relief in exchange for the debtor's commitment to invest in a specific environmental project.
Statement-II: Many developing nations are facing issues of rising debt loads, climate change, and nature loss due to such agreements.
Which one of the following is correct in respect of the above statements?
- a)Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
- b)Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
- c)Statement-I is correct but Statement-II is incorrect
- d)Statement-I is incorrect but Statement-II is correct
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements:Statement-I: Debt for Climate Swaps ...
- Recent Context: In recent years, debt-for-climate swaps have gained popularity among low- and middle- income countries as a debt-relief tool. Multilateral development banks and organizations like the UNDP have been promoting this approach to ease the burden of debt for these nations.
- Debt-for-climate swaps are a financial approach that helps alleviate this problem by freeing up funds for climate investments. They are a form of debt relief that transforms debt into a grant committed to undertaking climate-related investments. Hence statement-I is correct.
- Both commercial and official bilateral debts can be included in such swaps, with the latter allowing for redirected debt service payments towards projects mutually agreed upon by both parties, such as those related to climate action.
- Debt-for-climate swaps originated from debt-for-nature swaps, which were introduced in the 1980s to promote biodiversity conservation and tropical forest protection in exchange for debt relief.
- Bolivia and Conservation International executed the first debt-for-nature swap in 1987. Debt-for- climate swaps became a more extensive concept in the 2000s, encompassing not only nature conservation but also climate change mitigation and adaptation.
- In 2006, Germany and Indonesia implemented the first debt-for-climate swap, with the latter pledging to reduce greenhouse gas emissions through REDD+ (Reducing Emissions from Deforestation and Forest Degradation) initiatives in return for debt relief.
- Debt-for-climate swaps provide benefits for both creditors and debtors. Creditors can advance their development cooperation and climate finance goals, improve their chances of debt recovery, and strengthen their diplomatic ties with debtor nations
- Steps in Debt-for-climate swaps:
- Suppose a developing country is indebted to a bilateral creditor that wants to offer debt relief and encourage the developing country to pursue climate-friendly policies or projects.
- The creditor agrees that the developing country no longer needs to service its debt.
- In return, the developing country agrees with the lender either (i) to spend the money that would have been spent on debt service on climate-friendly projects or (ii) to adopt climate-friendly policies.
- Benefits of such agreements.
- International organisations and multilateral development banks exercise multiple types of measures to help highly vulnerable countries survive financial catastrophes caused by climate change impacts.
- However, in the past decade, debt-for-climate swaps has grown relatively popular among low- and middle-income countries.
- They offer an innovative way to make climate investments while creating the much-needed fiscal space.
- At the same time, they support climate investment by committing a country to swing their spending from debt service to an agreed public investment. Hence statement II is not correct.
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Community Answer
Consider the following statements:Statement-I: Debt for Climate Swaps ...
Explanation:
Statement-I:
Debt for Climate Swaps is indeed an agreement where a creditor forgives a portion of the debtor's foreign debt or provides debt relief in exchange for the debtor's commitment to invest in a specific environmental project. This is a mechanism aimed at addressing both debt sustainability and climate change issues.
Statement-II:
Many developing nations are indeed facing issues of rising debt loads, climate change, and nature loss due to various reasons, including debt for climate swaps. While these agreements may provide some relief in terms of debt repayment, they also come with challenges related to ensuring that the environmental projects funded through these swaps are effectively implemented and have a significant impact on addressing climate change and nature loss.
Therefore, in this context, Statement-I is correct as it accurately describes Debt for Climate Swaps, while Statement-II is incorrect as it does not provide a direct explanation for Statement-I but rather highlights the broader challenges faced by developing nations in the context of rising debt loads and environmental issues.
Statement-I:
Debt for Climate Swaps is indeed an agreement where a creditor forgives a portion of the debtor's foreign debt or provides debt relief in exchange for the debtor's commitment to invest in a specific environmental project. This is a mechanism aimed at addressing both debt sustainability and climate change issues.
Statement-II:
Many developing nations are indeed facing issues of rising debt loads, climate change, and nature loss due to various reasons, including debt for climate swaps. While these agreements may provide some relief in terms of debt repayment, they also come with challenges related to ensuring that the environmental projects funded through these swaps are effectively implemented and have a significant impact on addressing climate change and nature loss.
Therefore, in this context, Statement-I is correct as it accurately describes Debt for Climate Swaps, while Statement-II is incorrect as it does not provide a direct explanation for Statement-I but rather highlights the broader challenges faced by developing nations in the context of rising debt loads and environmental issues.
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Consider the following statements:Statement-I: Debt for Climate Swaps is an agreement where a creditor forgoes a portion of the debtors foreign debt or provides debt relief in exchange for the debtors commitment to invest in a specific environmental project.Statement-II: Many developing nations are facing issues of rising debt loads, climate change, and nature loss due to such agreements.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-Ib)Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-Ic)Statement-I is correct but Statement-II is incorrectd)Statement-I is incorrect but Statement-II is correctCorrect answer is option 'C'. Can you explain this answer?
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Consider the following statements:Statement-I: Debt for Climate Swaps is an agreement where a creditor forgoes a portion of the debtors foreign debt or provides debt relief in exchange for the debtors commitment to invest in a specific environmental project.Statement-II: Many developing nations are facing issues of rising debt loads, climate change, and nature loss due to such agreements.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-Ib)Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-Ic)Statement-I is correct but Statement-II is incorrectd)Statement-I is incorrect but Statement-II is correctCorrect 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 Consider the following statements:Statement-I: Debt for Climate Swaps is an agreement where a creditor forgoes a portion of the debtors foreign debt or provides debt relief in exchange for the debtors commitment to invest in a specific environmental project.Statement-II: Many developing nations are facing issues of rising debt loads, climate change, and nature loss due to such agreements.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-Ib)Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-Ic)Statement-I is correct but Statement-II is incorrectd)Statement-I is incorrect but Statement-II is correctCorrect 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 Consider the following statements:Statement-I: Debt for Climate Swaps is an agreement where a creditor forgoes a portion of the debtors foreign debt or provides debt relief in exchange for the debtors commitment to invest in a specific environmental project.Statement-II: Many developing nations are facing issues of rising debt loads, climate change, and nature loss due to such agreements.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-Ib)Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-Ic)Statement-I is correct but Statement-II is incorrectd)Statement-I is incorrect but Statement-II is correctCorrect answer is option 'C'. Can you explain this answer?.
Consider the following statements:Statement-I: Debt for Climate Swaps is an agreement where a creditor forgoes a portion of the debtors foreign debt or provides debt relief in exchange for the debtors commitment to invest in a specific environmental project.Statement-II: Many developing nations are facing issues of rising debt loads, climate change, and nature loss due to such agreements.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-Ib)Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-Ic)Statement-I is correct but Statement-II is incorrectd)Statement-I is incorrect but Statement-II is correctCorrect 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 Consider the following statements:Statement-I: Debt for Climate Swaps is an agreement where a creditor forgoes a portion of the debtors foreign debt or provides debt relief in exchange for the debtors commitment to invest in a specific environmental project.Statement-II: Many developing nations are facing issues of rising debt loads, climate change, and nature loss due to such agreements.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-Ib)Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-Ic)Statement-I is correct but Statement-II is incorrectd)Statement-I is incorrect but Statement-II is correctCorrect 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 Consider the following statements:Statement-I: Debt for Climate Swaps is an agreement where a creditor forgoes a portion of the debtors foreign debt or provides debt relief in exchange for the debtors commitment to invest in a specific environmental project.Statement-II: Many developing nations are facing issues of rising debt loads, climate change, and nature loss due to such agreements.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-Ib)Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-Ic)Statement-I is correct but Statement-II is incorrectd)Statement-I is incorrect but Statement-II is correctCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements:Statement-I: Debt for Climate Swaps is an agreement where a creditor forgoes a portion of the debtors foreign debt or provides debt relief in exchange for the debtors commitment to invest in a specific environmental project.Statement-II: Many developing nations are facing issues of rising debt loads, climate change, and nature loss due to such agreements.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-Ib)Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-Ic)Statement-I is correct but Statement-II is incorrectd)Statement-I is incorrect but Statement-II is correctCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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Here you can find the meaning of Consider the following statements:Statement-I: Debt for Climate Swaps is an agreement where a creditor forgoes a portion of the debtors foreign debt or provides debt relief in exchange for the debtors commitment to invest in a specific environmental project.Statement-II: Many developing nations are facing issues of rising debt loads, climate change, and nature loss due to such agreements.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-Ib)Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-Ic)Statement-I is correct but Statement-II is incorrectd)Statement-I is incorrect but Statement-II is correctCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Consider the following statements:Statement-I: Debt for Climate Swaps is an agreement where a creditor forgoes a portion of the debtors foreign debt or provides debt relief in exchange for the debtors commitment to invest in a specific environmental project.Statement-II: Many developing nations are facing issues of rising debt loads, climate change, and nature loss due to such agreements.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-Ib)Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-Ic)Statement-I is correct but Statement-II is incorrectd)Statement-I is incorrect but Statement-II is correctCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Consider the following statements:Statement-I: Debt for Climate Swaps is an agreement where a creditor forgoes a portion of the debtors foreign debt or provides debt relief in exchange for the debtors commitment to invest in a specific environmental project.Statement-II: Many developing nations are facing issues of rising debt loads, climate change, and nature loss due to such agreements.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-Ib)Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-Ic)Statement-I is correct but Statement-II is incorrectd)Statement-I is incorrect but Statement-II is correctCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Consider the following statements:Statement-I: Debt for Climate Swaps is an agreement where a creditor forgoes a portion of the debtors foreign debt or provides debt relief in exchange for the debtors commitment to invest in a specific environmental project.Statement-II: Many developing nations are facing issues of rising debt loads, climate change, and nature loss due to such agreements.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-Ib)Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-Ic)Statement-I is correct but Statement-II is incorrectd)Statement-I is incorrect but Statement-II is correctCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements:Statement-I: Debt for Climate Swaps is an agreement where a creditor forgoes a portion of the debtors foreign debt or provides debt relief in exchange for the debtors commitment to invest in a specific environmental project.Statement-II: Many developing nations are facing issues of rising debt loads, climate change, and nature loss due to such agreements.Which one of the following is correct in respect of the above statements?a)Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-Ib)Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-Ic)Statement-I is correct but Statement-II is incorrectd)Statement-I is incorrect but Statement-II is correctCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
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