Dow Jones, CCX launch carbon emissions indexes

[Karl]

Reuters, 26 August 2008 –

Dow Jones Indexes and the Chicago Climate Exchange on Tuesday announced the launch of two new emissions indexes which give investors access to the soaring global carbon markets, expected to be worth more than $100 billion this year. "Reducing greenhouse gases and other pollutants has become a major worldwide initiative that has drawn the participation of industrialized and emerging economies in key regions around the globe," said Michael A. Petronella, president of Dow Jones Indexes, in a statement.

Carbon trading aims to reduce the greenhouse gases blamed for global warming by setting a limit on emissions, then issuing permits based on this cap to heavy industry participating in the scheme. If a company pollutes over its quota, it can then determine whether it's cheaper to invest in reducing emissions or to simply buy the permits from another participant. The Dow Jones/CCX European Carbon Index tracks carbon dioxide permits traded under the European Union's Emissions Trading Scheme, also called EUAs. The Dow Jones/CCX Certified Emissions Reductions (CER) Index track the UN-approved clean energy offset credits traded under the Kyoto Protocol's Clean Development Mechanism. Both markets were worth an estimated $63 billion last year, according to a report by the World Bank.

Read Full Article: World Business Council for Sustainable Development (WBCSD)