XShares to Develop Carbon Emission Credits ETFs

XShares Advisors, a financial services company focused on the development and distribution of innovative exchange traded funds, announced this morning it has entered an agreement with the Chicago Climate Exchange [CCX], the second largest carbon emissions trading market in the world, to develop ETFs based on carbon emission credits. Carbon emission credits allow companies to emit a stated amount of carbon dioxide over a specified time period. Companies that emit more carbon than permitted often buy additional credits from firms that under-emit on exchanges such as the CCX. Dr. Richard Sandor, Chairman and CEO of the CCX hopes exchange traded carbon-emission funds will provide additional pathways for emitters to balance their books: "Chicago Climate Exchange is a financial institution that is providing a cost-effective means for emitters from all sectors of the economy to reduce greenhouse gas emission and the risks from global warming. One of the objectives of CCX is to build a robust market with the necessary financial incentives so that the private sector can play its critically important role in advancing environmental and social objectives."

Sources: Press Release
Commentary: Chinese Pollution Plays • New Emissions Index Would Make Attractive ETF • Go Green, Bring In the Green: Carbon Dioxide Is the New Commodity
Stocks/ETFs to watch: PowerShares WilderHill Clean Energy ETF (PBW), PowerShares Cleantech Portfolio (PZD), Market Vectors Environmental Services ETF (EVX)

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