That financial reform package passed by the Senate Ag Committee earlier this week not only would place strict regulations on the trading of derivatives, it also calls for a study on transparency in the carbon trade market in the U.S.
Senator Blanche Lincoln’s bill would have the Treasury Department, USDA, the EPA, the Commodity Futures Trading Commission, Securities and Exchange Commission, Federal Energy Regulatory Commission, Federal Trade Commission, the Energy Information Administration and the independent statistics arm of the Department of Energy take a close look at the emerging market “to ensure an efficient, secure, and transparent carbon market, including oversight of spot markets and derivative markets.”
The group would be required to submit a report to Congress on their study within six months after the bill becomes law.
Lincoln’s plan is expected to be merged with the Senate Banking Committee’s financial reform package.
Currently carbon credits are traded on the Chicago Climate Exchange and ten states in the Northeast operate a carbon market for power plants. Cap & Trade legislation passed the House last year but died in the Senate. Massachusetts Democrat John Kerry, South Carolina Republican Lindsey Graham and Connecticut independent Joseph Lieberman plan to introduce a revised plan on Monday
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