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, according to an announcement.
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.
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.”
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