CFTC Announces Voluntary Carbon Markets Convening05.12.2022
Commodity Futures Trading Commission Chairman Rostin Behnam announced the first-ever Voluntary Carbon Convening on June 2. The purpose of the meeting is to discuss issues related to the supply and demand for high quality carbon offsets, including product standardization and the data necessary to support the integrity of carbon offsets’ greenhouse gas emissions avoidance and reduction claims. Panelists will also discuss issues related to the market structure for trading carbon offsets and carbon derivatives as well as perspectives on the challenges and opportunities in these markets.
NEWS: CFTC Announces Voluntary Carbon Markets Convening. https://t.co/p5FKCsMQNX
— CFTC (@CFTC) May 11, 2022
“As companies increasingly turn to the derivatives markets to manage risk and keep pace with global efforts to decarbonize, I look forward to the CFTC’s facilitating these discussions,” said Chairman Behnam in prepared remarks to the ISDA Annual General Meeting. “Our goal is to foster innovation in crafting solutions to the climate crisis while ensuring integrity and customer protection.”
The further goal of the convening is to gather information from a wide variety of market participants in the voluntary carbon markets to better understand the potential role of the official sector in these markets, particularly as we see the emergence of CFTC regulated derivatives referencing cash offset markets. The convening will include participants from carbon offset standard setting bodies, a carbon registry, private sector integrity initiatives, spot platforms, designated contract markets, intermediaries, end-users, public interest groups, and others.
The convening will be held in the Conference Center at CFTC’s headquarters at Three Lafayette Centre, 1155 21st Street NW, Washington, D.C. beginning at 9.30 a.m. for participants only. Participants will also have an option to participate virtually. In accordance with the agency’s implementation of COVID-19 related precautions, the general public will have access to the convening by webcast on the CFTC’s website or may also listen by telephone.\
Voluntary carbon markets are one of the fastest growing markets in recent years.
Nasdaq has ambitions to launch futures on carbon removals as the market grows.
Deep and liquid financial markets for carbon credits will help reach net-zero.
AirCarbon Exchange will use the Eventus Validus platform for trade surveillance.
Supply of carbon credits is to be sold via auction to interested buyers by year end,