The Futures Industry Association’s (FIA) recently released report on climate-related policy and other efforts to combat climate change showed the private sector has made an impact.
FIA’s 2021 Sustainable Finance Report serves as an update and supplements the FIA’s September 2020 policy paper, focusing on environmental futures while featuring industry resources and case studies highlighting industry contributions.
“While governments have spearheaded the response to the challenge, I believe it is the private sector that has moved the needle over the last two years,” FIA President and CEO Walt Lukken said during opening remarks at FIA’s International Derivatives Expo conference.
“We should be proud that our markets will be front and center in managing the risk around climate change and helping discover prices that will align incentives, drive capital investment, and change citizen behavior.”
The report said emission allowance contracts are proving essential to reducing the carbon footprint, as well as the use of carbon offsets, clean fuels, bioenergy and recycled materials.
FIA is also participating in the Taskforce on Scaling Voluntary Carbon Markets, per authorities, seeking to scale a voluntary carbon market with an overarching goal of aiding the Paris Climate Agreement.
FIA personnel acknowledged work remains in reducing worldwide emissions and transitioning to a sustainable economy that alleviates climate change threats.