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CHICAGO: Two new indexes for carbon emissions titled Dow Jones/CCX European Carbon Index and Dow Jones/CCX Certified Emissions Reductions (CER) Inded hae been launched jointly by Dow Jones Indexes and Chicago Climate Exchange.

The indices serves as benchmarks for participants seeking exposure to the European Union Emissions Trading Scheme and Kyoto Protocol Clean Development Mechanism (CDM).

The two new indexes are the first in a series of global emissions indexes to be launched jointly by Dow Jones Indexes and CCX
The Dow Jones/CCX European Carbon Index is composed of actively traded European Union Allowances (EUA) futures contracts on the European Climate Exchange. It measures the present discounted value of EUAs—the carbon credits issued in the European Union Emissions Trading Scheme, across different maturities. The Dow Jones/CCX CER Index measures the present discounted value of CERs—the carbon offset allowances issued by the United Nations under the Kyoto Protocol Clean Development Mechanism, across different maturities.

All contracts used in the indexes’ calculations are the European Climate Exchange Carbon Financial Instrument Futures listed on ICE Futures.

The Euribor interest rates are used to discount maturities of the nearby contract while the Euro Interest Swap rates are used to discount the December expiry contracts for the two subsequent years.

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