Dow Jones and Chicago Climate Exchange launch global emissions index series

Dow Jones and the Chicago Climate Exchange (CCX) have launched two indexes linked to global emissions, the first in a new series created by the companies. The European Carbon Index will offer exposure to the European Union Emissions Trading Scheme (EU ETS), while the Certified Emissions Reduction (CER) Index is a benchmark for the Kyoto Protocol Clean Development Mechanism (CDM).

The EU ETS allocates companies with carbon credits that permit them to emit a certain level of greenhouse gas, known as European Union Allowances (EUAs). Companies that emit less than their entitlement have the right to sell their credits to other businesses that are above their cap.

The European Carbon Index is composed of EUA futures contracts, as actively traded on the European Climate Exchange, at a discounted value across different maturities. The Clean Development Mechanism allows developed