CAP Regulatory Compliance & Reporting 3

Question 1

Which provision in the Inflation Reduction Act (IRA) directly incentivizes industrial facilities to reduce GHG emissions through tax credits?

Accepted Answer

Section 45Q Carbon Oxide Sequestration Credit

Answer

Section 45Q provides tax credits per metric ton of qualified carbon oxide captured and sequestered or utilized.

Question 2

TCFD stands for Task Force on Climate-related Financial Disclosures. Which of its four disclosure pillars addresses how a company identifies and assesses climate-related risks?

Accepted Answer

Risk Management

Answer

The Risk Management pillar describes processes companies use to identify, assess, and manage climate-related risks.

Question 3

A facility subject to 40 CFR Part 98 must submit its annual GHG report by what deadline?

Accepted Answer

March 31 of the following year

Answer

EPA's Mandatory Reporting Rule requires covered facilities to submit annual reports by March 31 for the prior calendar year.

Question 4

Under CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation), which category of airlines must monitor and report emissions?

Accepted Answer

International airlines operating routes between participating states

Answer

CORSIA applies to international airlines operating routes between states that have opted into the scheme, requiring emissions monitoring and offsetting.

Question 5

In the context of carbon markets, what does 'additionality' mean for an offset project?

Accepted Answer

Emission reductions would not have occurred without the carbon finance incentive

Answer

Additionality requires that the emission reductions are beyond what would have happened in a business-as-usual scenario without carbon credit revenue.

(CAP) Certified Carbon Auditing Professional Practice Test

(CAP) Certified Carbon Auditing Professional Practice Test

CAP Regulatory Compliance & Reporting 3