WASHINGTON, D.C.— Cantrell Dumas, Director of Derivatives Policy, issued the following statement in connection with the release of Better Markets’ new Fact Sheet, “Can the CFTC Tame Carbon Fraud and Create Trust in a Broken System?”
“Although Voluntary Carbon Credits (VCCs) were originally marketed as a solution to combat climate change, they have become a tool for greenwashing. Instead of reducing carbon emissions, these credits often allow companies to appear environmentally friendly while continuing harmful practices. Scandals, such as Shell’s sale of bogus carbon credits and criminal charges against industry insiders, have further eroded trust, raising serious doubts about whether VCCs are truly helping in the fight against climate change.
“The CFTC has taken important first steps toward improving these markets, starting with its finalized guidance for the listing and trading of VCC derivative contracts, aimed at ensuring transparency and accountability in carbon trading. This has been bolstered by the CFTC’s first-ever enforcement action for fraud in the VCC market, signaling its commitment to tackling misconduct in this space.
“While these actions lay the foundation for reform, further steps are needed to ensure the guidance achieves its full potential. The CFTC must now develop ‘green milestones’—clear, measurable benchmarks that track emissions reductions and project integrity. These publicly disclosed milestones will provide stakeholders with a way to assess whether the market is genuinely advancing climate goals or still enabling false promises and fraudulent practices.
“With the combination of this guidance, enforcement actions, and the establishment of green milestones, the CFTC has the opportunity to tame carbon fraud and rebuild trust in a system that has long been broken.”
Learn more in our fact sheet.
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