CFTC Releases Request for Information on Climate-Related Financial Risk

The CFTC unanimously voted to release a Request for Information (RFI) that seeks public comment on climate-related financial risk to “better inform its understanding and oversight of climate-related financial risk as pertinent to the derivatives markets and underlying commodities markets.” The RFI is aimed at seeking public feedback on climate-related financial risk in derivatives markets, underlying commodities markets, registered entities, registrants, and other related market participants. The information collected from stakeholders will be used to “promote responsible innovation, ensure the financial integrity of all transactions subject to the Commodity Exchange Act (CEA), and avoid systemic risk.” The CFTC further advises that information collected may be used in its response to the response to the FSOC’s 2021 Report on Climate-Related Financial Risk, to guide the workstream of the CFTC’s Climate Risk Unit, and aid in the CFTC’s work to develop “new or amended guidance, interpretations, policy statements, regulations, or other potential Commission action.” CFTC Chairman Rostin Behnam noted, “The RFI will seek responses on questions specific to data, scenario analysis and stress testing, risk management, disclosure, product innovation, voluntary carbon markets, digital assets, greenwashing, financially vulnerable communities, and public-private partnerships and engagement.” The CFTC requests comment within 60 days after the date of publication in the Federal Register.

Click here to read the CFTC’s press release covering the Request for Information.
Click here to read Chairman Behnam’s opening statement on the RFI.