US regulators are taking a hard look at the voluntary carbon market. The CFTC has sent document requests to major registries, validators, certifiers, and third-party rating agencies, with particular attention to credits from orphan oil well cleanups and deforestation projects. The agency also plans to gather more data through international channels. The probe follows a rough stretch for the market. BloombergNEF data cited by Bloomberg shows voluntary offset issuance fell 12% last year compared with the 2021 peak, as buyers worried about greenwashing and many companies pulled back from climate commitments. The CFTC brought its first fraud enforcement action in this market in 2024. For anyone tracking carbon credits, the question is whether this review restores confidence or chases more buyers away. If it exposes weak verification, expect more pressure on registries and ratings firms. If it clears the market, it could set clearer rules for what counts as a real credit.
