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ARTICLE · 27 OCTOBER 2026

CFTC Scrutiny Of Carbon Markets Has Implications For Carbon Credit Registries

Jones Day
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The CFTC has identified alleged fraud in carbon credit markets as a new enforcement priority, raising significant compliance concerns for carbon credit registries and the independent auditors they rely upon. With at least one investigation underway, registries face potential liability for recklessly transmitting false information or aiding developer misconduct.

United StatesEnvironment
Daniella Einik
Daniella Einik
Jason Jurgens
Jason Jurgens
Mahesh V. Parlikad (Hesh)
Mahesh V. Parlikad (Hesh)
Nivedita Sathiakumar
Nivedita Sathiakumar
Brian R. Young
Brian R. Young
Aaron Seong
Aaron Seong
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In Short

The Situation: In a speech delivered in September 2026, David Miller, the director of enforcement for the Commodity Futures Trading Commission ("CFTC"), identified alleged fraud relating to carbon credits as a new enforcement priority and confirmed that at least one investigation is under way.

The Result: CFTC scrutiny exposes carbon credit registries—and potentially the independent third-party auditors whose verification reports registries rely upon—to investigation and perhaps enforcement on theories of aiding and abetting misconduct by project developers or recklessly transmitting false information provided by dishonest developers.

Looking Ahead: Carbon credit registries should anticipate subpoenas from the CFTC's Division of Enforcement, analyze available defenses, and assess whether to proactively alert the CFTC to any suspicions of misconduct by developers whose projects they registered or to whom they issued credits.

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