The first ever index for tracking the global price of carbon

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  • 26 Sep 2019 12:00 AM
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IHS Markit Launches World-first Carbon Credit Index

The first ever index for tracking the global price of carbon credits has been launched by global information provider, IHS Markit, allowing investors to access opportunities arising from “a primary strategy for reducing carbon emissions”. IHS Markit’s ‘Global Carbon index’, which combines proprietary information and futures markets data, tracks the performance of the largest, most liquid and most accessible tradable carbon markets: the European Union Emission Trading System, the California Cap-and-Trade Program, and the Regional Greenhouse Gas Initiative. The index currently values carbon credits at $23.65 and shows that to date investors would have seen a return of 132 percent if they had invested at the beginning of 2018. It is calculated using Oil Price Information Service (OPIS) data and carbon credit futures pricing in those markets. Co-founder of Climate Finance Partners, Eron Bloomgarden said it “creates an important benchmark which helps financial institutions to better assess and price climate-related financial risks”.

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