Verra Urges CFTC To Be More Assertive With Carbon Markets Fraud

Verra Urges CFTC To Be More Assertive With Carbon Markets Fraud - Carbon Herald

Carbon crediting leader Verra has urged the Commodity Futures Trading Commission (CFTC) in a comment letter to double down on addressing market manipulation and fraud concerns in voluntary carbon markets (VCMs).

In 2023, the CFTC issued an alert to inform the public on how to identify and report potential Commodity Exchange Act violations in the VCMs, marking one of the commission’s first steps towards regulating the emerging space. 

The CFTC announced it would prioritize the policing of carbon credits and would monitor the market for cases of sellers misstating a project’s benefits. 

With the above said, Verra encouraged the CFTC to be more assertive with its efforts to tackle instances of fraud in the VCMs, and promised to provide assistance with regulatory initiatives.

But at the same time, the carbon crediting platform warns against the danger of potentially suffocating the development of the carbon markets by cutting short the flow of finance and technology. 

Read more: US Regulators Are Looking For Fraud In Carbon Markets

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