Hunt for Fraud in Carbon Markets Deepens with New CFTC Unit

The US Commodity Futures Trading Commission is upping its plans to crack down on fraud and manipulation in carbon credits.

The derivatives regulator said Thursday that it is establishing an new enforcement task force to combat environmental fraud in both derivative markets and carbon credit markets.

“As more firms tout their environmental credentials and as voluntary carbon markets grow, there exists the potential for fraud and manipulation,” CFTC Chairman Rostin Behnam said in a statement.

The task force will also focus on greenwashing, mislabeling products as being environmentally friendly, the agency’s enforcement director, Ian McGinley said in a news release ...