CFTC Withdraws Guidance on Carbon Credits

On September 10, 2025, the Commodities Futures Trading Commission withdrew guidance--promulgated by the Biden Administration in September 2024--concerning the market for voluntary carbon credits.  Specifically, the CFTC stated that it was withdrawing the voluntary carbon credit guidance because it “provides limited value” and because it “placed a disproportionate focus on a particular class of derivative contracts”--i.e., contracts concerning carbon credits.  Rather, the CFTC stated that a “uniform regulatory framework”--without guidance specifically concerning carbon credits--"best serves market transparency, expectations, fairness, and integrity."

This development is aligned with the broader de-regulatory impetus of the Trump Administration, and, in particular, its quest to undo or remove climate-changed focused rules promulgated by regulators under the Biden Administration.  Thus, the action here--revoking CFTC guidance concerning voluntary carbon credits--is altogether predictable.  Nonetheless, the withdrawal of this specific guidance is certainly significant, as is the indication that the effort of the Trump Administration to rollback climate change-focused regulations continues to proceed.