CFTC withdrawal of carbon market guidance will weaken market integrity and undermine climate mitigation, warns CATF
Washington, D.C. – The Commodity Futures Trading Commission (CFTC) today announced the withdrawal of its “Guidance Regarding the Listing of Voluntary Carbon Credit Derivative Contracts,” reversing a decision intended to provide greater transparency and accountability in voluntary carbon markets.
“The short-sighted decision by the CFTC to withdraw its guidance on the listing of carbon credits is disappointing,” said Kathy Fallon, Land Systems Director at Clean Air Task Force (CATF). “Carbon markets can play a role in mitigating climate change, but only if the underlying carbon credits are high-quality. The CFTC’s guidance offered much-needed assurance to investors that carbon credits sold in the voluntary market would meet minimum quality standards at a time when public trust in the market is strained. Its withdrawal risks further eroding market integrity and undermining climate progress.”
CATF previously submitted comments to the CFTC calling for stronger oversight of voluntary carbon markets, including greater transparency into credit details, durability of carbon storage, and proper accounting for reversal risk. Robust standards, combined with government oversight, are necessary to ensure that voluntary carbon markets deliver real, verifiable climate benefits.
CATF will continue to push for regulatory action at the state and federal levels that strengthens transparency, safeguards investors, and restores confidence in carbon markets so they can play a meaningful role in addressing climate change.
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Natalie Volk, Communications Manager, [email protected], +1 703-785-9580
About Clean Air Task Force
Clean Air Task Force (CATF) is a global nonprofit organization working to safeguard against the worst impacts of climate change by catalyzing the rapid development and deployment of low-carbon energy and other climate-protecting technologies. With more than 25 years of internationally recognized expertise on climate policy and a fierce commitment to exploring all potential solutions, CATF is a pragmatic, non-ideological advocacy group with the bold ideas needed to address climate change. CATF has offices in Boston, Washington D.C., and Brussels, with staff working virtually around the world. Visit catf.us and follow @cleanaircatf.
