Reviving Carbon Credit Markets: CFTC's Proposed Guidance and UNDP's Initiative at COP28

The Commodity Futures Trading Commission (CFTC) has issued proposed guidance and requested public comment on the listing of voluntary carbon credit derivative contracts. The guidance outlines factors for exchanges to consider in contract design and listing, aiming to promote transparency, liquidity, accurate pricing, and market integrity. The proposed guidance addresses compliance with the Commodity Exchange Act and CFTC regulations, including requirements for contract terms, conditions, and submission to the CFTC. The comment period for the proposed guidance will be open for 75 days.