Greens, trade groups scrutinize CFTC effort to bring order to carbon credit trading
Federal regulators proposed guidelines to ensure voluntary carbon credits deliver genuine emissions reductions, aiming to prevent companies from using them as cover for continued pollution. This move addresses widespread concerns that many credits fail to provide the claimed environmental benefits. The guidance encourages markets to verify credits permanently reduce emissions by financing otherwise unattractive projects. Although not a strict regulation, it seeks to curb fraud in derivatives trading. This is relevant to greenwashing as it targets the core deception of overstated climate impact. By demanding proof of real, permanent reductions, it challenges the credibility of misleading carbon offset claims.
Source: eenews.netPublished on 2024-02-21