With the Western Climate Initiative (WCI) contemplating market design for its multi-state carbon trading program, the International Emissions Trading Association (IETA) has weighed in on market oversight proposals, advocating for increased transparency and a competitive market that is open to all participants.
IETA made these recommendations as part of its formal comments to the Western Climate Initiative (WCI) draft proposal for market oversight. The WCI is a collaboration of Western U.S. states and Canadian provinces seeking to reduce greenhouse gas emissions. The WCI incorporates a carbon cap and trade program, which limits greenhouse gas emissions from utilties and major industry and allows for trading of carbon allowances and offsets.
The WCI Market Oversight working group came forward with 12 recommendations, including collaboration with federal market regulators at the Commodities Futures Trading Commission (CFTC), mandating reporting of trades of WCI carbon instruments, requiring a single market for spot transactions, and not limiting participation of market participants.
Evolution Markets assisted in drafting the IETA response and fully supports its recommendations. We encourage you to review the IETA comments and provide your own input to WCI staff.
If you have any questions regarding the ongoing development of the WCI or wish to discuss transactions in the U.S. carbon markets, please contact us at: +1 914.323.0265 or +1 415.963.9137.