By Yongchang Chin
An exchange-traded fund tied to carbon futures made its trading debut in Hong Kong on Wednesday, the first of its kind for the Asian financial hub, bourse operator Hong Kong Exchanges and Clearing Ltd. said.
The ETF, called the CICC Carbon Futures ETF, extends coverage of Hong Kong-listed commodity-related ETFs to carbon credits, "an important asset class in the global drive to achieving carbon neutrality," HKEX said.
The fund is managed by China International Capital Corp. Hong Kong Asset Management Ltd.
The ETF tracks the ICE EUA Carbon Futures Index Excess Return, which measures the performance of a long-only basket of European Union Allowance futures contracts, HKEX said.
The European Union Allowance, or EUA, is a tradable unit of pollution permits in the European Union Emissions Trading Scheme. One EUA allows the holder to emit one metric ton of carbon dioxide or an equivalent amount of greenhouse gases.
Write to Yongchang Chin at yongchang.chin@wsj.com
(END) Dow Jones Newswires
03-22-22 2245ET
