Podcast - Cracking Down on Carbon Markets: CFTC and FTC Exercise Heightened Scrutiny
Today, the European Commission proposed an amendment to the EU Climate Law reviewing the 2040 climate targets that first enshrined climate neutrality by 2050—and with it, a structural shift in how climate action will be...more
On January 30, 2025, Senator John Kennedy of Louisiana proposed a joint resolution of disapproval aimed at rescinding the recent Commodity Futures Trading Commission ("CFTC") Guidance on Carbon Credits ("the Guidance"). The...more
AT A GLANCE - Law 15,042/24 (the “Consumption Tax Reform”) was a milestone for the regulation of Brazil's carbon market. It established the regulated market called the Brazilian Emissions Trading System (SBCE), recognized...more
Washington State’s ambitious Cap-and-Invest Program was on the ballot this November. The program is designed to reduce planet-warming greenhouse gases (GHG) in the state by requiring large-emitting businesses to purchase...more
The voluntary carbon credit ("VCC") market has become increasingly important in achieving net-zero goals for companies. However, the market has recently undergone scrutiny after reports of ineffective VCCs. Recent parallel...more
Purchasing carbon credits was once seen as a way for companies to sidestep genuine emissions reduction in their decarbonisation efforts. But that is changing as these products, and the way they are used, face growing...more
The Commodity Futures Trading Commission (“CFTC” or “Commission”) has inserted itself in recent years into efforts to scale the cash market for “high integrity” voluntary carbon credits. On September 20, 2024, the Commission...more
On September 19, 2024, the Commodity Futures Trading Commission (CFTC) approved final guidance regarding the listing of voluntary carbon credit (VCC) derivative contracts (the Final Guidance). The Final Guidance—which...more
The Federal U.S. District Court for the Northern District of Illinois entered an Order granting summary judgement for the U.S. Commodity Futures Trading Commission on July 1, 2024 and ordered $83 million in restitution and...more
On July 31, 2024, nine Democratic lawmakers from the House and Senate wrote a letter to the Commodity Futures Trading Commission’s (“CFTC”) Chairman in support of the proposed guidance regarding the listing of voluntary...more
In this week’s edition, we discuss a Colombian court’s ruling in favor of an indigenous community who challenged the legality of a carbon credit project and a letter written by environmental activist groups to 71 airlines...more
In this week’s edition of Cadwalader Climate, we discuss the EU’s final approval of the long-awaited – and highly debated – Nature Restoration Law. Staying on theme, we discuss the European Council’s agreement to adopt...more
Taylor Swift’s “Eras Tour” was one of the highest grossing music tours of all time with approximate proceeds exceeding US$1 billion. While this is a monumental feat, Taylor Swift also gained negative attention during the tour...more
In this week’s edition, our focus remains on carbon credits where the first ever set of “Core Carbon Principles”-labelled carbon credits were approved. The three European supervisory authorities publish their final reports on...more
In this week’s edition, we discuss the U.S. government’s proposed guidelines for the ever-controversial voluntary carbon markets. In the EU, ESMA published a report of its findings on greenwashing in the marketing materials...more
On May 28 2024, the Biden administration released the “Voluntary Carbon Markets Joint Policy Statement and Principles”. This is one of a number of recent international initiatives to “shore up” the voluntary carbon markets...more
With the voluntary carbon offset market being unregulated in the United States, California Assembly Bill No. 1305 (AB 1305) was enacted to confirm the authenticity of claimed emissions offsets, emphasizing the need to ensure...more
In this week’s edition, we discuss the European Parliament’s approval of a certification framework that is set to govern carbon removal activities, including the proper certification of carbon credits. Europe continues to...more
On Friday, March 15, 2024, Commodity Futures Trading Commission (“CFTC”) Market Risk Advisory Committee (“MRAC”) convened two roundtables in Washington DC....more
Advertisers wishing to emphasize their environmental progressiveness often assert that their products or processes are "carbon neutral." This is meant to convey that there are no net emissions of carbon associated with the...more
Assembly Bill 1305 (AB 1305), also called the Voluntary Market Disclosures Act, is a new California statute requiring companies to make certain disclosures if they make claims in the state regarding greenhouse gas (GHG)...more
California’s unprecedented AB 1305 law purports to target “greenwashing” by mandating public disclosures about virtually any claim of “significant” carbon reductions, but its broad wording and uncertain effective date raise...more
During 2023 the Commodity Futures Trading Commission (CFTC) engaged in several regulatory actions aimed at further clarifying its jurisdictional reach over environmental commodity markets generally and the voluntary carbon...more
The Commodity Futures Trading Commission (CFTC) issued proposed guidance (the Proposed Guidance) regarding the listing of voluntary carbon credit (VCC) derivatives on CFTC-regulated exchanges on Dec. 4, 2023. The CFTC's goal...more
2023 saw terms like “ESG,” “greenwashing,” and “circular economy” come into common use. We also saw a tsunami of other environmental, social, and governance (ESG)-related developments at the international, federal, and state...more