On June 10, ISDA responded to the European Commission’s (EC) consultation on the calculation of the carbon price paid in a third country under Article 9 of the Carbon Border Adjustment Mechanism (CBAM).
ISDA supports the EC’s proposal that evidence of the carbon price effectively paid should encompass all compliance options recognized under third-country pricing mechanisms, including the use of domestic carbon credits and international carbon credits, to meet CBAM obligations. The response encourages consideration of mutual recognition mechanisms for carbon prices paid in the context of electricity trades, as well as increased publicly available project-level information and disclosure under CBAM. It also proposes replacing the 10% cap on the use of international carbon credits with a reference to the quantitative limit established under the applicable third-country carbon pricing mechanism to ensure a level playing field with the treatment already afforded to domestic credits.
Documents (1) for ISDA Responds to EC Consultation on Calculation of Carbon Price Paid in a Third Country
Latest
Response to EC Consultation on Carbon Price
On June 10, ISDA responded to the European Commission’s (EC) consultation on the calculation of the carbon price paid in a third country under Article 9 of the Carbon Border Adjustment Mechanism (CBAM). ISDA supports the EC’s proposal that evidence...
Response to CFTC on Clearing Requirements
On June 11, ISDA responded to the US Commodity Futures Trading Commission’s notice of proposed rulemaking on the clearing requirement determination under Section 2(h) of the Commodity Exchange Act for interest rate swaps to account for Canadian dollar-denominated and Mexican...
Digital Assets and Derivatives: Where Next?
Digital assets are moving into a phase of institutional integration into derivatives markets. Trading venues, custodial infrastructures and tokenization platforms now exist across both traditional financial markets and public blockchain networks. While this diversity has accelerated innovation and liquidity formation,...
ISDA Publishes ISDA SIMM® Methodology, Version 2.8+2512
Following the 2026 primary calibration exercise, ISDA is pleased to publish SIMM® version 2.8+2512. This version of the ISDA SIMM has updates that are based on the full recalibration of the model using historical data up to 31 December 2025....