Merrill Lynch Global Research has introduced a new global emissions benchmark, the MLCX Global CO2 Emissions Index, which is designed to provide investors with a clear and balanced insight into the rapidly growing global CO2 emissions market.
The MLCX Global CO2 Emissions Index is based on contracts established under the European Union Emission Trading Scheme and under the Kyoto protocol. The MLCX Global CO2 index (MLCXCO2E) gives investors exposure to both schemes, weighting them by their relevance in the global emissions market. In addition, the European Union Allowance (EUA) and Certified Emissions Reduction (CER) markets can also be accessed individually through the MLCX EUA Index (MLCXEUAE) and the MLCX CER Index (MLCXCERE), respectively. More importantly, as the global emissions market expands, Merrill Lynch Global Research plans to increase the number of underlying instruments in the index.
Francisco Blanch, Merrill Lynch head of global commodities research, said: “The weightings of the new MLCX Global CO2 Emissions Index are based on liquidity of the underlying instruments, a crucially important element for investors looking to gain exposure to a new and fast-growing market.”
Abyd Karmali, managing director and global head of carbon emissions markets, Merrill Lynch said: “The MLCX Global Carbon emissions indices are an important addition to our growing suite of carbon finance and environmental sustainability solutions and has come in response to strong demand from our institutional, asset management, and wealth management clients who seek exposure to the rapidly growing global carbon market.”
He continued: “At Merrill Lynch we are embedding the new risks and opportunities presented by the carbon markets across all financial product categories and our intention is to continue delivering innovative solutions for clients, whether they be focused on commodities, fixed-income, equities, or carbon-driven principal investment and private equity opportunities.”