The Commodity Futures Trading Commission (CFTC) is seeking public comment to better understand the climate-related financial risks related to derivatives and commodities.
Specifically, public responses to the request for information (RFI) will help inform the CFTC’s next steps to promote responsible innovation, ensure the financial integrity of all transactions, and avoid systemic risk. Further, it will inform the commission’s response to the recommendations of the Financial Stability Oversight Council 2021 Report on Climate-Related Financial Risk and as well as the work of its Climate Risk Unit.
“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,” CFTC Chair Rostin Behnam said. “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.”
The commission may use this information to inform potential future actions, including issuing new or amended guidance, interpretations, policy statements, regulations, or other actions. The comment period will be open for 60 days following publication in the Federal Register.