Dow Jones Indexes and the Chicago Climate Exchange have partnered to launch two new global emissions indexes: a European carbon index and a certified emissions reductions index. The new indexes are expected to be only the first benchmarks in a larger series to be launched by Dow Jones Indexes and the Chicago Climate Exchange.

The Dow Jones/CCX European Carbon Index will serve as a benchmark for the European Union Emissions Trading Scheme (EU ETS). The Dow Jones/CCX Certified Emissions Reductions (CER) Index will serve the same purpose for the Kyoto Protocol Clean Development Mechanism (CDM). The European Carbon Index will list actively traded European Union Allowances (EUA) futures contracts on the European Climate Exchange. The index will offer benchmark prices for carbon credits issued through the EU ETS. The CER Index will do the same for the carbon offset allowances that the United Nations issue under the CDM.

"Reducing greenhouse gases and other pollutants has become a major worldwide initiative that has drawn the participation of industrialized and emerging economies in key regions around the globe, said Michael A. Petronella, President of Dow Jones Indexes. "Emissions trading has surfaced as the most cost-efficient means of achieving this goal and the Chicago Climate Exchange is well positioned to facilitate this trading on a global basis. The Dow Jones/CCX EUA and CER Indexes provide market participants with price gauges to assess their exposure to this growing asset class. We hope to expand our offerings for emissions-themed benchmarks in the future."

The two new indexes will have some key differences from any other equity index. Because carbon futures contracts usually include a specific delivery date, unlike equities that simply offer shareholders ownership of a corporation, they must be 'rolled.' To roll a futures position, upcoming contracts must be sold and contracts that are not yet due must be bought. The new Dow Jones and CCX indexes will be rolling indexes, and will roll contracts once a year — over four days each December.

Both the European Carbon Index and the CER Index are calculated in euros. Values for both indexes are published at the end of each business day. Based on back-tested history, both indexes seem to be promising investment opportunities. For the European Carbon Index, estimated daily back-tested history is available from January 2, 2008 forward. For the CER Index, data is available from April 1, 2008 forward.