The WFE supports the Government’s ambition to foster integrity in carbon and nature markets, and to create an enabling regulatory and policy environment for those markets. The WFE also supports the principles-based approach proposed in the consultation, and clear efforts to align with international standards and best practice.
Exchanges will be critical to the success of carbon and nature markets because they provide the efficient, rules-based market infrastructure needed for investors, issuers and intermediaries to have confidence in traded-market activities.
Exchanges maintain a balance between the interests of all types of market participant and, in creating transparent markets that are accessible to all, serve the broader economy and society, providing fair and orderly markets and prioritising investor protection. Exchanges are able to ensure a reliable and predictable process that leads to a trade and to an official price as well as bringing together market participants to facilitate liquidity, supporting equal opportunity to trade and an undisputable traded price. These characteristics will be critical to the continued success of carbon and nature markets, which will rely on transparent and fair trading by a wide range of market participants based on reliable systems of price discovery.
