Consider the following statements:
Statement I: The Carbon Border Adjustment Mechanism is designed to impose a carbon tax on imports of certain goods.
Statement II: It will help in preventing carbon leakage from one country to another.
Which one of the following is correct in respect of the above statements?
1
Both Statement I and Statement II are correct, and Statement II is the correct explanation for Statement I.
2
Both Statement I and Statement II are correct, but Statement II is not the correct explanation for Statement I.
3
Statement I is correct, but Statement II is incorrect.
4
Statement I is incorrect, but Statement II is correct.