New CFTC Climate Subcommittee

The US Commodity Futures Trading Commission (CTFC) has established a new Climate-Related Market Risk Subcommittee (Climate Subcommittee) of the CFTC’s Market Risk Advisory Committee (MRAC). 

Oxford Martin Senior Fellow and Post-Carbon Transition Programme Research Lead Ben Caldecott has joined the new 35-member subcommittee, which is comprised of experts from the financial sector, agricultural and energy markets, data and intelligence service providers, the environmental and sustainability public interest sector, and academics focused on climate change, adaptation, public policy, and finance. 

The subcommittee has been established to provide a report examining climate related financial and market risks, including:

• challenges to evaluating and managing climate-related financial and market risks

• ways in which market participants can improve integration of climate related scenario analysis, stress testing, governance initiatives, and disclosures into risk assessments and reporting

• policy initiatives and best practices for risk management and disclosure of financial and market risks related to climate change that support financial stability

• possible methods by which market participants’ data and analyses can contribute to the assessment of climate-related financial and market risks and their potential impacts on a range of financial stability indicators.