UBS, Diapason to launch first biofuels index

Swiss bank UBS and Swiss commodity firm Diapason Commodities Management Investors are to launch the first commodity-based index for biological fuels.

The UBS Diapason Global Biofuel Index will cover a range of commodities used in the production of ethanol and biodiesel and will be published in USD, EUR, CHF and JPY, the companies said.

Production of ethanol and biodiesel - two of the major alternative fuel sources to fossil fuels - is increasing rapidly as governments attempt to offset carbon dioxide emissions produced by carbon fuels. Recent legislation in the US requires ethanol to be used as a blendstock in gasoline instead of the more

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