By: Rick Umoff,
What do the 2008 financial crisis, the Commodity Futures Trading Commission (“CFTC”), and renewable energy have in common? More than you might think. In July 2010, the CFTC was granted expanded authority under the Dodd Frank Wall Street Reform and Consumer Protection Act (“Dodd Frank”) to regulate the risky transactions thought to be at the heart of the financial crisis.[i] These transactions, including credit default swaps, collateralized mortgage obligations, and other derivatives labeled “swaps,” will be subject to a new regulatory regime. In its Notice of Proposed Rulemaking, the CFTC asked renewable energy stakeholders to comment on whether environmental commodities, such as renewable energy certificates and carbon offsets, should be regulated as swaps.[ii]
