• * Through proactive engagement with the exchanges, clearinghouses, industry groups and market participants, an active and ongoing dialogue regarding new and emerging risks related to climate change and the impact of extreme and increasingly frequent and severe weather events and how such climate-related market risks are being or ought to be addressed in a fair and equitable way.
  
  
• * A better and more complete understanding in the CFTC of the derivatives and related products being developed to address climate-related market risks and to facilitate the transition to a net-zero economy, and how such products fit within and interact with the CFTC’s regulatory and supervisory framework, including the identification of areas where refinements or modifications could be made either to the products or to the CFTC’s approaches.
  
  
• * Increased participation in domestic and international fora aimed at building consensus for consistent standards, taxonomies, disclosures, and practices across derivatives products and markets, as well as related clarity on regulatory, capital, and accounting standards.
  
  
• * Coordinated efforts to support the development of relevant and reliable climate-related market risk data resources.
  
  
• * Consideration and evaluation of whether tools such as climate finance labs or regulatory sandboxes would enhance development of climate-related market risk tools, products, and services.
  
  

“The COVID-19 pandemic as well as increasingly severe weather and environmental impacts have firmly established the role of financial regulators in providing decisive leadership in times of market stress,” said Behnam. “Climate change poses a major threat to U.S. financial stability, and I believe we must move urgently and assertively in utilizing our wide-ranging and flexible authorities to address emerging risks. The CFTC’s unique mission focused on risk mitigation and price discovery puts us on the front lines of this effort. Leveraging the CFTC’s personnel and expertise demonstrates our commitment to taking thoughtful and deliberate next steps toward building a climate-resilient financial system.”