Barclays Capital launches Barclays Capital Global Carbon Index

By Devika Patel

Knoxville, Tenn., Dec. 6 - Barclays Capital said it has launched the Barclays Capital Global Carbon index.

The new index tracks the performance of carbon credits associated with the world's major greenhouse gas emissions trading schemes.

The index is governed by the Barclays Capital Environmental Markets Index Committee, a newly formed independent body made up of representatives from the carbon industry and members of the institutional investment community. The committee has been mandated to provide oversight to the development of the index.

The index initially will be comprised of a combination of two sub-indexes that track the performance of the carbon credits associated with the EU Emissions Trading Scheme and the Kyoto Clean Development Mechanism. It will incorporate new schemes as they develop around the world.

The sub-indexes are calculated daily and use standard settlement prices and market calendars most appropriate for international investors, according to a Barclays news release.

"The launch of this index is an important development in our environmental markets product offering," Barclay's head of environmental markets Louis Redshaw said in the release. "As we move towards the launch of the first phase of the Kyoto protocol and the second phase of the EU Emissions Trading Scheme, we expect the market to grow significantly as both corporates and investors look to manage their risks and leverage new opportunities. Barclays Capital is regarded as one of the major innovators in the emissions trading space, and with the addition of this product to our portfolio we are very pleased to be able to provide carbon risk solutions to the full spectrum of clients."

London-based Barclays Capital is the investment banking arm of Barclays Bank plc. It provides financing, risk management and financial advisory services for large corporate, government and institutional clients.

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