The International Organization of Securities Commissions (IOSCO) seeks comment on a Voluntary Carbon Markets Discussion Paper issued to advance the discussion about what sound and efficient Voluntary Carbon Markets should look like and what role financial regulators may play in promoting integrity in those markets.
Americans for Financial Reform Education Fund, Amazon Watch and the Institute for Agriculture and Trade Policy responded: “Innovation in carbon offset markets has been irresponsible to date, yet these markets continue growing exponentially. Without uniform quality standards and transparency, this level of market expansion will create incredible risks for investors, capital markets, and the broader economy. IOSCO must urge securities and derivatives regulators to monitor and investigate the integrity of voluntary carbon offset products, markets, and registries, as well as set rigorous standards that result in products that are not materially misleading or fraudulent, and markets that are neither vulnerable to manipulation nor contributing to systemic financial risk.”