S&P Dow Jones announces launch of carbon emission allowances index

By Sarah Lizee

Olympia, Wash., March 9 – S&P Dow Jones Indices announced the launch of the S&P GSCI Carbon Emission Allowances (EUA) EUR index.

“The new index, which is the first of its kind in the market, provides investors with a reliable and publicly available investment performance benchmark for European carbon emission allowances and is an expansion of the single-commodity series of indices based on the S&P GSCI,” S&P said in a press release.

The EU emissions trading system (EU ETS) is a market-based method developed to reduce global greenhouse gas emissions by companies.

The EU ETS is the world’s first international emissions trading system based on the “cap and trade” principle. Within the cap, companies receive or buy emission allowances, which they can trade with one another as needed.

The index is based on the ICE EUA futures contract and represents the first carbon emissions single-commodity index for the S&P GSCI index series and is designed to provide investors with a way to capture opportunities in this market.

New York-based S&P Dow Jones Indices is part of McGraw Hill Financial.

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