ETF Securities emits first Carbon ETC in Europe

ETF Securities (ETFS) has listed the first carbon exchange-traded commodity (ETC) on the London Stock Exchange (LSE) offering exposure to the carbon emissions allowance futures market for the first time in Europe. ETFS Carbon tracks the ICE ECX EUA Futures Contract, which is currently the most liquid exchange-traded contract in the EU Emissions Trading Scheme (ETS) and is traded in London on the ICE Futures Market. Each ETFS Carbon product is equivalent to one emissions allowance, which provides the right to emit one tonne of carbon dioxide gas.

The EU ETS is the largest, most liquid global greenhouse gas (GHG) trading market at present, with around 80% of global turnover in CO2 allowances and credits in 2007. In the first half of 2008, the total EU ETS trading activities were valued at around €30 billion, marking an increase of 80% in the same period during 2007. Emissions trading schemes were established in line with the Kyoto Protocol in 1997, which created a blueprint for the reduction of global GHG emissions.