On June 2, the CFTC unanimously voted to release its request for information (RFI). CFTC Chairman Rostin Behnam stated, “The RFI will seek responses on questions specific to data, scenario analysis and stress testing, risk management, disclosure, product innovation, voluntary carbon markets, digital assets, greenwashing, financially vulnerable communities, and public-private partnerships and engagement.”
Commissioner Kristin Johnson stated, the RFI “reflects the CFTC’s established leadership in response to requests to better understand the role of voluntary carbon markets, as well as the agency’s commitment to ensuring a comprehensive effort to understand how our markets, market participants—including large and small agricultural and energy sector commercial and end users—may be impacted by physical risks or acute climate-related events and transition risks or the stresses that result from shifts in policies, regulations, customer preferences, and technology.”
According to the CFTC, the public comments will help to inform next steps to further the CFTC’s purpose to, “among other things, promote responsible innovation, ensure the financial integrity of all transactions subject to the Commodity Exchange Act (CEA), and avoid systemic risk.”
They’ll also help inform CFTC’s response to the recommendations of the Financial Stability Oversight Council 2021 Report on Climate-Related Financial Risk and inform the ongoing work of the Commission’s Climate Risk Unit.
Looking Forward
“The Commission may use this information to inform potential future actions including, but not limited to, issuing new or amended guidance, interpretations, policy statements, regulations, or other potential Commission action within its authority under the CEA, as well as its participation in any domestic or international for a,” the CFTC stated.
“With a growing number of companies making net-zero pledges, there is notable interest in carbon offset or sustainability products,” said CFTC Commissioner Christy Goldsmith Romero. “However, concerns about transparency, credibility, and greenwashing may hamper the integrity and growth of these markets.”
“I look forward to public input on whether there are customer protections, guardrails or standards that the Commission should consider as part of its mission to promote market integrity and transparency and to keep our markets free of fraud and manipulation,” Romero added.
The comment period will be open for 60 days following publication in the Federal Register. 
Jaclyn Jaeger is a contributing editor at Compliance Chief 360° and a freelance business writer based in Manchester, New Hampshire.