Congress blocks carbon credit trading—shielding fossil fuels from price signals
H.J.Res. 90 — Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Commodity Futures Trading Commission relating to "Commission Guidance Regarding the Listing of Voluntary Carbon Credit Derivative Contracts". · Filed by Stephanie Bice (R-OK) · Introduced Apr 3, 2025 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This resolution disapproves a CFTC guidance document that would allow trading of voluntary carbon credit derivatives on U.S. futures exchanges. If passed, the guidance is nullified and carbon credit derivatives cannot be listed for trading. The resolution benefits fossil fuel and energy-intensive industries that oppose carbon markets; it harms climate-focused investors and traders seeking to hedge carbon exposure.
Why we flagged it
The resolution uses the Congressional Review Act (CRA) to block a regulatory guidance that would have expanded financial markets for carbon credits. While framed as disapproval of a 'rule,' the operative effect is to prevent a new market mechanism from functioning—a deregulatory outcome achieved through procedural disapproval.
What the text implies
- Blocks price discovery for voluntary carbon credits, preventing market-based valuation of carbon reduction and making it harder for investors to assess climate risk in their portfolios.
- Removes a hedging tool for companies with carbon exposure, forcing them to rely on over-the-counter or international markets rather than transparent U.S. futures exchanges.
The full analysis lists 4 implications of this text.
Who stands to gain
fossil fuel producers; energy-intensive manufacturers; utilities with high carbon exposure