AFME plays an active role in shaping policy and regulatory developments across both compliance and voluntary carbon markets.
In compliance carbon markets, AFME engages with policymakers on the ongoing development of the EU Emissions Trading System (ETS), including discussions linked to future reviews of the framework and the role of financial participants in supporting market liquidity and efficient price formation. AFME also contributes to discussions on the potential use of high-quality international carbon credits in support of the EU’s climate objectives.
AFME continues to advocate for measures that strengthen the integrity and efficiency of environmental markets, including initiatives aimed at addressing VAT fraud risks in energy and carbon trading.
AFME also supports efforts to advance linkage between the EU and UK ETSs and works with industry stakeholders and policymakers to provide practical input on the development of linked carbon markets.
On voluntary carbon markets, AFME engages with EU, UK and international bodies, including IOSCO, to promote high-integrity standards, transparency and robust market infrastructure that can support credible corporate climate action and investor confidence.