January 2025

Commodity Futures Trading Commission Finalizes Voluntary Carbon Market Standards

Pratt's Energy Law Report
Halley I. Townsend | Alexander S. Holtan

Public Policy & Regulation attorneys Halley Townsend and Alexander Holtan co-authored an article for Pratt's Energy Law Report analyzing the Commodity Futures Trading Commission's (CFTC) finalized guidance regarding the listing of voluntary carbon credit (VCC) derivatives on CFTC‑regulated exchanges. First proposed in December 2023, the guidance seeks to standardize VCC derivative contracts to promote transparency and liquidity in the market; for example, provisions call for VCCs to accurately describe the nature of greenhouse gas (GHG) emissions or removals they intend to represent and caution crediting programs to conservatively quantify GHG emissions reductions or removals underlying VCC derivatives. In their article, Ms. Townsend and Mr. Holtan underline notable features of the guidance and explain their significance.

The authors also published a Holland & Knight alert on this topic.

READ: Commodity Futures Trading Commission Finalizes Voluntary Carbon Market Standards

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