The Commodity Futures Trading Commission (CFTC) promoted the need for developing high-integrity voluntary carbon markets in publishing proposed guidance for the listing of voluntary carbon credit (VCC) derivative contracts.
The proposal, put forward by the CFTC on Monday, does not seek to modify existing regulatory requirements but instead outline particular commodity characteristics designated contract markets should consider when designing a VCC futures contract’s terms and conditions, said CFTC Chairman Rostin Behnam in a statement. The guidance follows two years of examination of carbon markets by the agency.
