Sustainability and Climate Risk (SCR) — Question 44
A Central American country signs the Paris Agreement to align actions and policies to keep global temperature rise below 1.5°C. The country’s environmental agency develops a nationally determined contribution plan that includes domestic, economy-wide, and sector-specific policies. The power generation sector is most comprehensively covered by the plan.
Which policy included in the plan targets the power generation sector?
Answer options
- A. Green/low carbon public procurement
- B. Renewable portfolio standard
- C. Emission trading scheme
- D. Carbon tax
Correct answer: B
Explanation
The correct answer, B. Renewable portfolio standard, directly mandates a specific percentage of energy to be generated from renewable sources, effectively targeting the power generation sector. The other options, while related to environmental policy, do not specifically focus on increasing renewable energy generation in the power sector like the renewable portfolio standard does.