ISDA Response to METI’s Consultation on Carbon Credit Report

On May 13, 2022, ISDA submitted its response to Japan’s Ministry of Economy, Trade and Industry’s (METI) consultation on its carbon credit report. In its response, ISDA highlights the important role derivatives and financial institutions play in the carbon credit markets by increasing liquidity and transparency. ISDA also notes it is important to clarify the legal nature of voluntary carbon credits (VCC) to enhance the robustness of the VCC trading market.

A Positive Step to Improve the FRTB in the EU

As the Basel III capital reforms are finalized for implementation in key jurisdictions, ISDA is maintaining a laser focus on making sure the rules are robust and risk-appropriate. Simply put, if capital requirements are set disproportionately high, this will have...