the CFTC is interested in:
- manipulative and wash trading or other violations of the CEA … Commodity Exchange Act … in carbon market futures contracts
- fraud in the underlying spot markets related to ghost (illusory) carbon offsets listed on carbon market registries
- double counting or other fraud related to carbon offsets
- fraudulent statements relating to material terms of the carbon offset
- manipulation of tokenized carbon markets
Double enforcement is possible.
Double Enforcement?
Could both the FTC and the CFTC bring separate enforcement actions against a company for the same underlying fact pattern involving fraud in carbon markets? Right now, without further guidance from either agency, the answer is yes.4
Comments to the Green Guides illustrate that businesses are concerned about the possibility of double enforcement and recommend that the FTC consult with the CFTC and other agencies asserting jurisdiction over carbon markets.
With thanks to Josh Margolis on Linked In.
