Environment chapter practice

Sustainability, Circular Economy and Green Finance MCQs

Practise 80+ Sustainability, Circular Economy and Green Finance MCQs for UPSC Prelims in Environment, including 13+ previous year questions. The sample set below is shown with correct answers and explanations.

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Sample Sustainability, Circular Economy and Green Finance questions

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Q1EnvironmentSustainability, Circular Economy and Green FinancePYQ 2025

Consider the following statements about 'PM Surya Ghar Muft Bijli Yojana': 1. It targets installation of one crore solar rooftop panels in the residential sector. 2. The Ministry of New and Renewable Energy aims to impart training on installation, operation, maintenance and repairs of solar rooftop systems at grassroot levels. 3. It aims to create more than three lakhs skilled manpower through fresh skilling, and up-skilling, under scheme component of capacity building. Which of the statements given above are correct?

  • A1 and 2 only
  • B1 and 3 only
  • C2 and 3 only
  • D1, 2 and 3Correct

Explanation

Correct. All three statements accurately describe the PM Surya Ghar scheme's installation target, training objective, and skilling goal.

Why the other options are incorrect
Option A

Statement 3 is also correct; the scheme explicitly targets creation of over three lakh skilled personnel through its capacity-building component.

Option B

Statement 2 is also correct; the MNRE aims to train personnel at grassroot levels for solar rooftop system installation and maintenance.

Option C

Statement 1 is also correct; the scheme targets one crore residential solar rooftop installations across India.

Q2EnvironmentSustainability, Circular Economy and Green FinancePYQ 2025

Consider the following statements: Statement I: Of the two major ethanol producers in the world, i.e., Brazil and the United States of America, the former produces more ethanol than the latter. Statement II: Unlike in the United States of America where corn is the principal feedstock for ethanol production, sugarcane is the principal feedstock for ethanol production in Brazil. Which of the statements given above are correct?

  • ABoth Statement I and Statement II are correct and Statement II explains Statement I
  • BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
  • CStatement I is correct but Statement II is not correct
  • DStatement I is not correct but Statement II is correctCorrect

Explanation

Correct. The USA is the world's largest ethanol producer (using corn), not Brazil; however, Brazil does use sugarcane as its principal feedstock.

Why the other options are incorrect
Option A

Statement I is incorrect; the USA produces more ethanol than Brazil, making it the world's largest producer.

Option B

Statement I is incorrect; the USA leads global ethanol production, not Brazil.

Option C

Statement I is incorrect; the USA surpasses Brazil in ethanol output despite Brazil being the second-largest producer.

Q3EnvironmentSustainability, Circular Economy and Green FinancePYQ 2025

Consider the following types of vehicles: 1. Full battery electric vehicles 2. Hydrogen fuel cell vehicles 3. Fuel cell electric hybrid vehicles How many of the above are considered as alternative (powertrain) vehicles?

  • AOnly one
  • BOnly two
  • CAll the threeCorrect
  • DNone

Explanation

Correct. Battery electric, hydrogen fuel cell, and fuel cell electric hybrid vehicles all use alternative powertrains distinct from internal combustion engines.

Why the other options are incorrect
Option A

All three types use non-conventional powertrains and qualify as alternative vehicles.

Option B

Fuel cell electric hybrids also qualify as alternative powertrain vehicles alongside the other two.

Option D

All three are recognised alternative powertrain vehicles by transport and energy authorities worldwide.

Q4EnvironmentSustainability, Circular Economy and Green FinancePYQ 2024

One of the following is the exhaust pipe emission from Fuel Cell Electric Vehicles, powered by hydrogen?

  • AHydrogen peroxide
  • BHydronium
  • COxygen
  • DWater vapourCorrect

Explanation

Correct. In a hydrogen fuel cell, hydrogen reacts with oxygen to produce electricity and water vapour as the only exhaust emission.

Why the other options are incorrect
Option A

Hydrogen peroxide is not produced in a PEM fuel cell; the electrochemical reaction yields water, not H₂O₂.

Option B

Hydronium (H₃O⁺) is an intermediate ion in aqueous solutions, not a fuel cell exhaust product.

Option C

Oxygen is a reactant consumed at the cathode, not an exhaust product of the fuel cell.

Q5EnvironmentSustainability, Circular Economy and Green FinancePYQ 2024

Recently, the term 'pumped-storage hydropower' is actually and appropriately discussed in the context of which one of the following?

  • AIrrigation of terraced crop fields
  • BLift irrigation of cereal crops
  • CLong duration energy storageCorrect
  • DRainwater harvesting system

Explanation

Correct. Pumped-storage hydropower stores energy by pumping water uphill during surplus generation and releasing it through turbines during peak demand, enabling long-duration storage.

Why the other options are incorrect
Option A

Pumped-storage hydropower is an energy storage technology, not an irrigation technique for terraced fields.

Option B

Lift irrigation and pumped-storage hydropower are entirely different concepts; the latter stores grid-scale energy.

Option D

Rainwater harvesting captures precipitation for direct use; pumped-storage is a grid-scale energy balancing mechanism.

Q6EnvironmentSustainability, Circular Economy and Green FinancePYQ 2024

Consider the following materials: 1. Agricultural residues 2. Corn grain 3. Wastewater treatment sludge 4. Wood mill waste Which of the above can be used as feedstock for producing Sustainable Aviation Fuel?

  • A1 and 2 only
  • B3 and 4 only
  • C1, 2, 3 and 4Correct
  • D1, 3 and 4 only

Explanation

Correct. All four materials are recognised feedstocks for SAF production through various certified conversion pathways such as Fischer-Tropsch and HEFA.

Why the other options are incorrect
Option A

Wastewater sludge and wood mill waste are also approved SAF feedstocks under ASTM-certified pathways.

Option B

Agricultural residues and corn grain are also widely used SAF feedstocks.

Option D

Corn grain is also an approved feedstock for SAF, particularly through the alcohol-to-jet pathway.

Q7EnvironmentSustainability, Circular Economy and Green FinancePYQ 2024

Consider the following: 1. Battery storage 2. Biomass generators 3. Fuel cells 4. Rooftop solar photovoltaic units How many of the above are considered 'Distributed Energy Resources'?

  • AOnly one
  • BOnly two
  • COnly three
  • DAll fourCorrect

Explanation

Correct. Battery storage, biomass generators, fuel cells, and rooftop solar PV are all decentralised energy assets classified as distributed energy resources.

Why the other options are incorrect
Option A

All four are small-scale, decentralised energy assets qualifying as distributed energy resources.

Option B

Fuel cells and biomass generators also qualify as DERs alongside battery storage and rooftop solar.

Option C

All four items are distributed energy resources; none is excluded from this classification.

Q8EnvironmentSustainability, Circular Economy and Green FinancePYQ 2022

Consider the following statements: 1. Gujarat has the largest solar park in India. 2. Kerala has a fully solar powered International Airport. 3. Goa has the largest floating solar photovoltaic project in India. Which of the statements given above is/are correct?

  • A1 and 2
  • B2 onlyCorrect
  • C1 and 3
  • D3 only

Explanation

Correct. Cochin International Airport in Kerala became the world's first fully solar-powered airport; the other two statements are factually incorrect.

Why the other options are incorrect
Option A

Statement 1 is incorrect; at the time of the question, the largest solar park was the Bhadla Solar Park in Rajasthan, not in Gujarat.

Option C

Statement 1 is incorrect (Rajasthan holds the largest solar park) and Statement 3 is incorrect (the largest floating solar project is not in Goa).

Option D

Statement 3 is incorrect; the largest floating solar PV project in India is at Ramagundam in Telangana (NTPC), not in Goa.

Q9EnvironmentSustainability, Circular Economy and Green FinancePYQ 2020

According to India's National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels? 1. Cassava 2. Damaged wheat grains 3. Groundnut seeds 4. Horse gram 5. Rotten potatoes 6. Sugar beet Select the correct answer using the code given below:

  • A1, 2, 5 and 6 onlyCorrect
  • B1, 3, 4 and 6 only
  • C2, 3, 4 and 5 only
  • D1, 2, 3, 4, 5 and 6

Explanation

Correct. The National Policy on Biofuels allows surplus, damaged or surplus food grains, cassava, rotten potatoes and sugar beet but excludes edible oilseeds and pulses like groundnut and horse gram.

Why the other options are incorrect
Option B

Groundnut seeds and horse gram are not listed as biofuel feedstocks; the policy avoids diverting edible oilseeds and pulses.

Option C

Groundnut and horse gram are excluded; the policy emphasises use of surplus and waste biomass rather than food-grade oilseeds and pulses.

Option D

Groundnut seeds and horse gram are excluded under the policy to prevent competition with food security.

Q10EnvironmentSustainability, Circular Economy and Green FinancePYQ 2020

With reference to solar water pumps, consider the following statements: 1. Solar power can be used for running surface pumps and not for submersible pumps. 2. Solar power can be used for running centrifugal pumps and not the ones with piston. Which of the statements given above is/are correct?

  • A1 only
  • B2 only
  • CBoth 1 and 2
  • DNeither 1 nor 2Correct

Explanation

Correct. Solar power is versatile enough to run both surface and submersible pumps and both centrifugal and piston-type pumps.

Why the other options are incorrect
Option A

Statement 1 is incorrect; solar power can drive both surface and submersible pumps through appropriately sized PV arrays.

Option B

Statement 2 is incorrect; solar-powered piston (positive displacement) pumps are widely available and used for low-flow deep-well applications.

Option C

Both statements are incorrect; solar energy can power surface, submersible, centrifugal, and piston pumps.

Q11EnvironmentSustainability, Circular Economy and Green FinancePYQ 2017

It is possible to produce algae based biofuels, but what is/are the likely limitation(s) of developing countries in promoting this industry? 1. Production of algae based biofuels is possible in seas only and not on continents. 2. Setting up and engineering the algae based biofuel production requires high level of expertise/technology until the construction is completed. 3. Economically viable production necessitates the setting up of large scale facilities which may raise ecological and social concerns. Select the correct answer using the code given below:

  • A1 and 2 only
  • B2 and 3 onlyCorrect
  • C3 only
  • D1, 2 and 3

Explanation

Correct. Algae biofuel production demands high technical expertise and large-scale facilities that raise ecological and social concerns, but it is not limited to seas.

Why the other options are incorrect
Option A

Statement 1 is incorrect; algae can be cultivated on land in photobioreactors or open ponds, not only in seas.

Option C

Statement 2 is also correct; the technology-intensive nature of algae cultivation is a significant barrier for developing countries.

Option D

Statement 1 is incorrect; algae cultivation is feasible on continents using freshwater or wastewater in controlled systems.

Q12EnvironmentSustainability, Circular Economy and Green FinancePYQ 2015

With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct? 1. It is a Public Limited Government Company. 2. It is a Non-Banking Financial Company. Select the correct answer using the code given below:

  • A1 only
  • B2 only
  • CBoth 1 and 2Correct
  • DNeither 1 nor 2

Explanation

Correct. IREDA is both a Public Limited Government Company under the Ministry of New and Renewable Energy and an RBI-registered NBFC that finances renewable energy projects.

Why the other options are incorrect
Option A

Statement 2 is also correct; IREDA is registered with RBI as a Non-Banking Financial Company.

Option B

Statement 1 is also correct; IREDA is incorporated as a Public Limited Government Company under the Companies Act.

Option D

Both statements are correct; IREDA functions as a government-owned NBFC for clean energy financing.

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Frequently asked questions

How many Sustainability, Circular Economy and Green Finance MCQs are available for UPSC Prelims practice?
PrelimsAI currently has 80+ Sustainability, Circular Economy and Green Finance MCQs under Environment. This page shows 12 sample questions in full.
How many Sustainability, Circular Economy and Green Finance previous year questions are included?
13+ questions in this chapter are tagged as UPSC Prelims PYQs. PYQs are prioritised in the visible sample set when available.
Do these Sustainability, Circular Economy and Green Finance questions include explanations?
Yes. The 12 visible sample questions show the correct option and explanation on this page.
Where should I go after practising Sustainability, Circular Economy and Green Finance?
Continue with Environmental Impact Assessment and Governance or Disaster-Environment Interface, or return to the Environment subject page for more chapter-wise practice.

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