Voluntary carbon markets: Analysis of regulatory oversight in the U.S.

Voluntary carbon markets are widely considered to have an important role to play in achieving greenhouse gas emissions goals. Market demand from entities and individuals purchasing carbon credits that are created through investments in nature-based or technology-based projects have fueled growth of the sector, with demand projected to increase by a factor of 15 or more by 2030 and a factor of 100 by 2050.

ISDA’s thoughtful contribution to developing safe and efficient carbon markets is particularly timely as its publication coincides with the U.S. Commodity Futures Trading Commission’s (CFTC’s) first ever 'Voluntary Carbon Markets Convening’ where the CFTC Chairman Rostin Behnam announced the Formal Request for Information on climate-related market risk, which was approved unanimously by the CFTC.