Carbon Trading Goes ETF/ETN on NYSE (NYX, GRN)

It seems that the insatiable appetite for new exchange traded funds (ETF’s) and exchange traded notes (ETN’s) has now gone as far as carbon trading, which will be a highly unique exchange traded note offering.   

• The NYSE (NYSE: NYX) is launching the iPath Global Carbon ETN (NYSE Arca: GRN) as the first ETN designed to provide investors with exposure to the global price of carbon.

This is linked to the Barclays Capital Global Carbon Index Total Return (BGCITR), which is designed to measure the performance of the most liquid carbon-related credit plans and is designed to be an industry benchmark for carbon investors. Each carbon-related credit plan included in the BGCITR is represented by the most liquid instrument available in the marketplace. The BGCITR expects to incorporate new carbon-related credit plans as they develop around the world. The BGCITR currently includes two carbon-related credit plans: European Union Emission Trading Scheme or EU ETS Phase II and Kyoto Protocol’s Clean Development Mechanism.

we have also seen many other iPath ETN’s launched.  There is a listing for metals ETN’s and then again for soft commodity ETN’s.

Jon C. Ogg
June 25, 2006