The US Commodity Futures Trading Commission's Energy and Environmental Markets Advisory Committee held a meeting on 27 June outside of Salt Lake City, Utah. It marks the third EEMAC meeting under the sponsorship of CFTC Commissioner Summer Mersinger.
The first panel featured Derek Sammann, Senior Managing Director, Global Head of Commodities & Options Products with CME Group, who provided a presentation on the state of the metals markets. Sammann highlighted that copper is one of the largest base metals with significant global applications. As metals, and copper in particular, are essential to reach net-zero emissions goals by 2050, Sammann noted that copper demand is projected to double.
The second panel featured a presentation from Michael Rolband of the Virginia Department of Environmental Quality about wetland mitigation credits. Mersinger noted in her opening remarks that mitigation credits are being produced, bought, and sold at both the state and federal levels and that given the CFTC's "experience in promoting transparent derivatives markets on numerous commodities, it stands to reason our knowledge and expertise could offer guidance to those involved with the wetland and compliance mitigation credits who are interested in creating more transparent marketplaces for the buying and selling of these credits."
Commissioner Mersinger announced the leadership and membership of the EEMAC's two Subcommittees, which will be focusing on physical energy infrastructure and metals markets in transitional energy. "As these subcommittees begin their work," Mersinger said, "I hope we can work together, find common ground, and challenge ourselves to reach for solutions and fix problems."
The Subcommittee on Physical Energy Infrastructure will be chaired by Timothy Fitzgerald, an Associate Professor of Energy Commerce & Business Economics at Texas Tech, and the Subcommittee on the Role of Metals Markets in Transitional Energy will be chaired by Ian Lange, an Associate Professor of Economics and Business at the Colorado School of Mines and an expert in metals.
The Subcommittee on Physical Energy Infrastructure will provide a report to the EEMAC that will evaluate what is required to ensure the energy markets in the US remain resilient.
The Subcommittee on the Role of Metals Markets in Transitional Energy will provide a report to the EEMAC that will examine the role of critical metals in transitional energy sources and their potential impact on derivatives markets.