What’s new: A subsidiary of major investment bank China International Capital Corp. Ltd. (CICC) launched a carbon futures exchange-traded fund (ETF) in Hong Kong on Wednesday, the first such offering in the Asian financial hub.
The CICC Carbon Futures ETF tracks the ICE EUA Carbon Futures Index, which measures the performance of a long-only basket of European Union Allowance futures contracts, according to a statement released by the Hong Kong Stock Exchange on Wednesday.
The fund extends the coverage of Hong Kong-listed commodity ETFs to carbon credits, an important asset class in the global drive to achieving carbon neutrality, the bourse said.
The background: China has been ramping up efforts to tackle climate change since President Xi Jinping announced in 2020 the nation’s plan to peak carbon emissions by 2030 and reach net zero carbon emissions before 2060. China launched a national carbon trading market last July.
Related: In Depth: China’s Launch of World’s Largest Carbon Market Has a Sputtering Start
Contact reporter Tang Ziyi (ziyitang@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)
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