July 21 -- Comment period extended to October 7, 2022. https://www.federalregister.gov/d/2022-15621
June 8 -- The Commodity Futures Trading Commission (“CFTC” or “Commission”) is seeking public responses to this Request for Information to better inform its understanding and oversight of climate-related financial risk as pertinent to the derivatives markets and underlying commodities markets. Public responses to this request will help to inform the Commission's next steps in furtherance of its purpose to, among other things, promote responsible innovation, ensure the financial integrity of all transactions subject to the Commodity Exchange Act, and avoid systemic risk. The information received will also inform the Commission's response to the recommendations of the Financial Stability Oversight Council 2021 Report on Climate-Related Financial Risk and inform the ongoing work of the Commission's Climate Risk Unit. The Commission may use this information to inform potential future actions including, but not limited to, issuing new or amended guidance, interpretations, policy statements, regulations, or other potential Commission action within its authority under the Commodity Exchange Act as well as its participation in any domestic or international fora. Comments must be received on or before August 8, 2022.
The effects of climate change and the transition to a low-carbon economy present emerging climate-related financial risks, which fall into two broad categories: Physical risks and transition risks. Physical risks generally are characterized by harm caused by acute, climate-related events such as hurricanes, wildfires, floods, and heatwaves; and chronic shifts in precipitation patterns, sea level rise, and ocean acidification. These extreme weather events and natural disasters, especially as they increase in frequency and/or intensity, can damage assets, disrupt operations, and increase costs. Transition risks generally are characterized by stresses to certain financial institutions or sectors that result from shifts in policy, regulations, customer and business preferences, technology, credit or insurance availability, or other market or social forces that can affect business operations.
Climate-related financial risk may directly or indirectly impact Commission registered entities, registrants, and other market participants as well as the derivatives markets and the underlying commodities markets themselves. Effects may include, but are not limited to, heightened market volatility, disruptions of historical price correlations, and challenges to existing risk management assumptions. The Commission is seeking comment on all applicable aspects of its existing regulatory framework and market oversight, as they may be affected by climate-related financial risk. . . .
The Commission is seeking public feedback on all aspects of climate-related financial risk as it may pertain to the derivatives markets, underlying commodities markets, registered entities, registrants, and other related market participants. In addition to any general input, the Commission is interested in responses to the questions posed below. The Commission may use this information to inform potential future actions including, but not limited to, the issuance of new or amended guidance, interpretations, policy statements, or regulations, or other potential Commission action. The Commission welcomes any relevant comments, including on related topics that may not be specifically mentioned but that a commenter believes should be considered.
Subjects (34 questions):
Scenario Analysis and Stress Testing (4)
Risk Management (5)
Product Innovation (4)
Voluntary Carbon Markets (3)
Digital Assets (1)
Financially Vulnerable Communities (2)
Public-Private Partnerships/Engagement (5)
Capacity and Coordination (2)