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".
If passed, HJR90 would prevent the implementation of the CFTC's guidance, effectively halting any regulations or frameworks the agency intended to establish concerning the trading of voluntary carbon credits. This could have significant implications for how businesses and markets engage with carbon credit trading, potentially leading to less oversight and fewer regulations in an area that is critical for enforcing environmental standards and promoting sustainable business practices.
HJR90 is a joint resolution that seeks to express congressional disapproval of the guidance issued by the Commodity Futures Trading Commission (CFTC) regarding the listing of voluntary carbon credit derivative contracts. This guidance is significant as it establishes a framework for the trading of voluntary carbon credits, which are essential in efforts to combat climate change by incentivizing reduction in greenhouse gas emissions through market mechanisms. The resolution calls for this rule, published in the Federal Register, to have no force or effect, essentially nullifying the CFTC's guidance.
The disapproval articulated in HJR90 reflects broader political and economic debates regarding how environmental regulations should be structured and enforced. Proponents of the resolution may argue that the CFTC’s guidance could impose undue regulatory burdens on businesses, while opponents might contend that such regulations are necessary to ensure accountability and integrity in carbon markets. The resolution highlights a tension between market freedom and regulatory oversight in the context of environmental policy.