Lawmakers press carbon‑credit development; experts say farmers could supply credits, exchanges can create products

WASHINGTON — The House Agriculture Committee heard testimony on voluntary carbon credit markets and whether exchanges and regulators can structure reliable, verifiable commodity-like instruments that expand farmers’ revenue streams.

Representative Randy Feenstra and others pressed witnesses about the CFTC’s work and a task force on voluntary carbon credits. Richard Sandor, who has advised environmental credit systems, said he believes American farmers could supply the credits needed to reduce U.S. emissions and pointed to multiple agricultural practices (no‑till, methane reduction, range management) that can be quantified and monetized. He said such markets can add revenue streams for farmers and that exchanges could design futures or other contracts tied to these credits.

Why it matters: Voluntary carbon markets intersect climate policy, farm income diversification and commodity market design. Lawmakers asked whether exchanges, the CFTC, and other regulators can ensure credible registries, avoid fraud and provide product standards.

Next steps

Witnesses recommended standardization, robust verification and exchange product design to build credible markets that provide value and protect suppliers and buyers.