Green indices launched by Dow Jones Indexes and Chicago Climate Exchange

Date: Wednesday, August 27, 2008
Author: Hedge Funds Review

Dow Jones Indexes and the Chicago Climate Exchange (CCX) have launched the Dow Jones/CCX European Carbon Index and Dow Jones/CCX Certified Emissions Reductions (CER) Index.

The indexes are rolling indexes that roll once a year in December over a four-day period. The carbon index will serve as benchmarks for investors looking for exposure to the European Union emissions trading scheme. The CER will do the same for the Kyoto Protocol clean development mechanism.

The EU emissions trading scheme is the largest multi-country, multi-sector emissions trading program in the world.

The clean development mechanism allows developed nations committed to reducing greenhouse gas emissions to invest in projects that reduce emissions in developing nations.

Reducing greenhouse gases is a major worldwide initiative among industrialised and emerging economies around the globe. “Emissions trading has surfaced as the most cost-efficient means of achieving this goal and the Chicago Climate Exchange is well positioned to facilitate this trading on a global basis,” said Michael Petronella, president of Dow Jones Indexes.