Merrill Launches CO2 Index

Merrill Lynch Global Research has introduced a new global emissions benchmark 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, 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.