Statement of Nathaniel Keohane
President, Center for Climate and Energy Solutions (C2ES) 

September 20, 2024

On the Commodities Futures Trading Commission’s (CFTC) guidance regarding the listing for trading of voluntary carbon credit derivative contracts:

“The CFTC’s guidance will give a timely boost to the voluntary carbon market, and puts a spotlight where it’s needed: on the importance of ensuring environmental integrity. Building confidence in the quality of carbon credits, by promoting transparency and establishing clear principles for integrity, is the key to helping the market meet its potential to catalyze tens of billions of dollars into the just clean energy transition and nature-based climate solutions.

“Importantly, this guidance recognizes that designated contract markets (DCMs) may look to industry-recognized standards, such as the Integrity Council for the Voluntary Carbon Market (ICVCM), to ensure that carbon credits meet quality standards aligned with the CFTC’s guidance. The ICVCM, which C2ES is proud to have helped establish as a founding member of the Executive Secretariat, is assessing carbon crediting programs and methodologies against its Core Carbon Principles, which provide a clear and transparent benchmark for carbon credit quality.

“The ICVCM’s pioneering efforts are helping to ensure a supply of high-integrity carbon credits and give buyers and sellers the confidence they need to scale the voluntary carbon market. Today’s action by the CFTC demonstrates that market regulators have an important and complementary role to play in ensuring a high-integrity market—and that in doing so, they can build on the work of the ICVCM and other civil society organizations.”

C2ES submitted comments on the CFTC guidance in January: C2ES Comments.