Trump Administration Reverses Carbon Offset Regulations, CRS Says

A Congressional Research Service report examines the rapid expansion of voluntary carbon offsets as the Trump Administration reduces related federal oversight. The CFTC withdrew its guidance for voluntary carbon credit derivatives in September 2025, arguing that it did not improve transparency or liquidity, while the SEC has proposed rescinding its 2024 climate disclosure rules. The report highlights the policy trade-off between addressing offset quality and integrity concerns and avoiding unintended regulatory consequences. The voluntary carbon market has grown five-fold over the past decade, with the United States ranking second globally in credits issued by project location. U.S. issuance is dominated by chemical processes, waste management, and forestry and land use, while questions concerning additionality and actual climate benefits remain unresolved.
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