Release Number 8541-22
CFTC Releases Request for Information on Climate-Related Financial Risk
June 02, 2022
Washington, D.C. — The Commodity Futures Trading Commission today unanimously voted to release a Request for Information (RFI) to seek public comment on climate-related financial risk to better inform its understanding and oversight of climate-related financial risk as pertinent to the derivatives markets and underlying commodities markets.
Public responses to this request will help to inform the Commission’s next steps in furtherance of its 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. The information received will also inform the Commission’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. 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 fora.
“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, said Chairman Rostin Behnam. “My intention is to focus on ensuring that America’s farmers, ranchers, manufacturers, commercial end-users, and investors are equipped to manage their risks from increasingly severe and frequent weather events as well as the transition to a net-zero, low-carbon economy. The RFI seeks to ensure that we as regulators are informed, educated, and engaged.”
In seeking public comment, the CFTC is committed to working with other regulators, industry and market participants, end-users and the public to gain input on the future of carbon markets. The comment period will be open for 60 days following publication in the Federal Register.