XShares to Develop ETF Based on Carbon Emission Credits

XShares Advisors LLC will develop exchange-traded funds (ETFs) based on carbon emission credits, which allow firms and other organizations the right to emit a stated amount of carbon dioxide over a specified time period, the company announced.

XShares Advisors LLC, a subsidiary of registered investment advisor XShares Group LLC, will develop the ETFs through an agreement with the Chicago Climate Exchange, Inc. (CCX), a wholly owned subsidiary of Climate Exchange Plc and the second largest live carbon emissions trading market in the world. Carbon emissions trading occurs between organizations that emit more carbon emissions than they are permitted and those firms who have extra emission credits because they have produced less carbon dioxide than allowed.

The New York-based XShares launched five exchange-traded funds (ETFs) on the New York Stock Exchange late January, with each aimed at a segment of the health care, life science and biotechnology industries (See NY Firm Unveils ETFs for Health, Biotech Research).