Thursday, October 3, 2024.
A US Commodity Futures Buying and selling Fee (CFTC) has just approved the final guidance referring to the itemizing for negotiation of voluntary carbon credit score (VCC) by-product contracts.
Defining VCC as “a tradable intangible instrument issued under a carbon credit program (that) represents a reduction in (greenhouse gas) emissions (GHG) or removal from the atmosphere equivalent to one metric ton of carbon dioxide”, the CFTC has not considerably departed from its original proposal, put to public hearing in December 2023.
This step represents the primary time {that a} U.S. monetary regulator has moved ahead in constructing a monetary system that gives efficient instruments for reaching emissions reductions, with a contract design and itemizing course of that may assist advance the standardization of by-product contracts. of voluntary carbon credit with the intention to promote their transparency and liquidity.
These are “regulatory guidance to markets, on financial contracts as tools to manage risks, promote price disclosure and capital allocation for decarbonization efforts”, mentioned the president of the CFTC, Rostin Behnam.
“I congratulate Chairman Behnam and the CFTC on releasing final guidance in support of high-integrity voluntary carbon markets (VCMs). The CFTC’s guidance will promote the integrity of carbon credits and allow for greater liquidity and price transparency. I look forward to continued collaboration with the CFTC and other government agencies involved in shaping the development of responsible, efficient, and high-integrity VCMs as part of the Biden-Harris Administration’s ambitious efforts to address the climate crisis and accelerate the transition to clean energy that benefit all Americans.” bgv
This remaining steering is the result of more than five years of collaboration with a various group of market individuals similar to agricultural stakeholders, ranchers, foresters, landowners, industrial finish customers, power market stakeholders, entities centered on emissions buying and selling, CFTC-registered exchanges and clearinghouses, businesses carbon credit standing methods, credit score applications, public curiosity teams, teachers and different essential stakeholders within the voluntary carbon credit score market.
Under you possibly can obtain this Last Steering September 20, 2024.
