CFTC EEMAC Recommends Formation of Subcommittee on Carbon Markets
At a meeting on September 15, 2021, the CFTC Energy and Environmental Markets Advisory Committee ("EEMAC") recommended the formation of a subcommittee to report back "guiding principles" on the structure of carbon markets.
The new EEMAC subcommittee would report on the design of the derivatives and underlying cash markets for environmental products, including carbon allowances and offsets, that are intended to address greenhouse gas emissions. Subject to CFTC approval, a request for subcommittee member nominations will be published in the Federal Register.
Commissioner Dan M. Berkovitz explained that carbon markets can aid companies in the reduction of emissions and avoidance of climate-related financial risks. Mr. Berkovitz said that an objective of the subcommittee is to include "a broad and diverse range of viewpoints."
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