March 17, 2021

CFTC establishes climate risk unit

A Climate Risk Unit has been established within the Commodity Futures Trading Commission.  The new unit will focus on the role played by derivatives markets in understanding, pricing and addressing climate risk.  With staff drawn from various operating divisions within the CFTC, the Climate Risk Unit will work to effect early engagement with industry, and to support the development of globally consistent standards, taxonomies and practices to help guide the economy through the transition toward environmental sustainability.  The new unit will engage in research and outreach, engaging with market participants to address climate-related risk, to better understand the projects being developed to address that risk, and to evaluate the use of tools like regulatory sandboxes to promote the development of climate-related market risk products and services.

CFTC press release