New Indices EEX GCI Core And EEX GCI Extended Will Track Global Carbon Markets

New Indices EEX GCI Core And EEX GCI Extended Will Track Global Carbon Markets - Carbon Herald
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The European Energy Exchange (EEX) – the leading energy exchange in Europe which develops, operates and connects markets for energy and related products, introduced on September 5th its new index family – the Global Carbon Index (GCI) Family.

It is constituted by indices tracking the performance of the carbon prices set by compliance emissions trading schemes around the world. The new indices are: the EEX GCI Core, and the EEX GCI Extended.

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The EEX GCI Core is designed to track the performance of the most liquid and mature global markets in compliance carbon emissions allowances by reflecting their price trends. The trading schemes included are: the EU ETS, the UK ETS, the California Cap and Trade Program, and the Regional Greenhouse Gas Initiative (RGGI).

The EEX GCI Extended aims to provide a truly global view of compliance carbon markets by including the ETS markets covered in the GCI Core plus China ETS, Korea ETS and the New Zealand ETS.

The weight of the carbon prices from each ETS program differs as it is based on the actual “physical size” of the respective ETS in the given year or the actual amount of emissions covered by the ETS. That also shows their relevance and importance in the global picture of tackling emissions. 

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The European Energy Exchange also announced it will extend its offering as the world is paving the path for a global low-carbon future.

“The Global Carbon Index Family was developed to serve as a trusted source for the growing compliance markets. We believe that the markets need a realistic understanding of carbon prices at a global level, and that our unique calculation methodology can address this need,” commented Peter Reitz, CEO of EEX.

The EEX GCI Core and the EEX GCI Extended will be published on the EEX Transparency Platform every weekday, except for holidays as defined in the EEX Group holiday calendar. The Core and Extended indices have the following variants: Spot Index, Total Return Index and Excess Return Index. All indices are published in US dollars and euros.

A EEX Global Carbon Index Advisory Committee has been established to oversee the indices and continue their ongoing development. The committee will also gather expertise from key carbon market stakeholders. 

Members of the Committee include representatives from the private and public sector alike, including individuals from ACT Financial Solutions, Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), Evonik Operations, the International Carbon Action Partnership (ICAP), RWE Supply & Trading GmbH, Unicredit Bank AG and Vertis Environmental Finance, amongst others.

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