(This post was co-authored by EDF Climate Risk Attorney Elle Stephens)
Disasters that are fueled by climate change, like fires, floods, and hurricanes, increasingly pose risks to the U.S. financial system, including the derivatives market.
The U.S. Commodity Futures Trading Commission (CFTC) regulates the derivatives market and is now considering updates to its risk management regulations. These updates are an important opportunity to ensure that market participants properly manage climate-related financial risks.