The U.S. Commodity Futures Trading Commission (CFTC) has proposed to oversee a greenhouse gas contract on the Chicago Climate Exchange–a move that suggests the government agency is positioning itself for future regulatory duties under cap-and-trade legislation, according to a Reuters analysis.
Currently the U.S. carbon market is entirely voluntary and relatively small, but it has the potential to grow into a trillion dollar market, if the U.S. Congress passes legislation to control greenhouse gas emissions.
The Waxman-Markey climate change bill, passed by the House in July, splits regulatory duty betweent the Federal Energy Regulatory Commission (FERC) and the CFTC. However, a bill introduced by Senators Diane Feinstein and Olympia Snowe would give complete authority to the CFTC.
The Senate has yet to release a draft climate change bill spelling out its regulatory intentions, but the CFTC proposal appears to be an effort to influence lawmakers.
Read the full report at the link below.
Loading...