CFTC Acting Chair Rostin Behnam established an interdivisional Climate Risk Unit ("CRU"). Participating staff from across CFTC operations will focus "on the role of derivatives in understanding, pricing, and addressing climate-related risk and transitioning to a low-carbon economy."
The CFTC stated that the CRU could facilitate:
- a dialogue with a variety of market participants on how to address climate-related market risks in an equitable way;
- increased understanding within the CFTC of the derivatives used (1) to address climate-related market risks and (2) to facilitate the transition to a net-zero economy;
- progress in establishing consistent standards, taxonomies, disclosures and practices across derivatives products and markets, domestically and internationally;
- a coordinated effort to develop climate-related market risk data resources; and
- the initiation of climate finance "labs" or "regulatory sandboxes."
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