- New EEX Global Carbon indices to provide in-depth understanding of global compliance carbon markets
- Unique methodology introduced by weighting with cap volumes of ETS programmes
- First truly global carbon index, including national ETS programs from Asia Pacific
- Advisory committee established to shape the further development of indices
Leipzig, 5 September 2023 - The European Energy Exchange (EEX) has launched its Global Carbon Index (GCI) Family, offering a comprehensive view into the rapidly evolving global carbon markets. The new index bundle will introduce the EEX GCI Core, and the EEX GCI Extended.
- 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 price trends in the EU ETS, UK ETS, as well as the California Cap and Trade Program and Regional Greenhouse Gas Initiative (RGGI).
- The EEX GCI Extended provides a truly global view of compliance carbon markets. The extended version will include ETS markets covered in the GCI Core, as well as the China National ETS, Korea ETS and the New Zealand ETS.
Peter Reitz, CEO of EEX, states: “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. Our indices consider different carbon prices based on the actual amount of emissions they cover, thus putting them in perspective of their actual relevance. We look forward to extending our offering as we pave the path for a global low-carbon future.”
For the EEX GCI Core and the EEX GCI Extended, prices of carbon contracts are weighted by the cap volume of the ETS programs from where the constituent products originate, which represents the actual “physical size” of the respective ETS in the given year. Both indices are published in US dollars and euros.
Advisory committee established to shape the further development of indices
In order to enable the continued development of these indices and to account for the ongoing trend of extending carbon pricing to further regions and sectors on a global scale, the EEX Global Carbon Index Advisory Committee has been set up to 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.
Gergely Szabo, Investment Strategist at Vertis Environmental Finance, member of EEX’s advisory committee for the indices, notes: “Having operated in carbon markets since 1998, Vertis recognizes the need for industry collaboration to build transparent carbon pricing signals. We are proud to work with EEX as part of this initiative.”
Transparent and accurate carbon price signals are fundamental for countries, cities, businesses and institutions implementing emission reduction measures to reach Net Zero targets by 2050. According to a 2022 report published by Interational Carbon Action Partnership one-third of the world’s population lives under an ETS program in force. In 2022, revenues from carbon pricing exceeded 95 billion USD, incentivising decarbonisation from covered sectors while funding solutions for climate change. Two-thirds of countries consider using carbon pricing in their so-called Nationally Determined Contributions (NDCs) under the Paris Agreement.
Granular carbon prices published on a daily basis
Starting today, 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.
The European Energy Exchange (EEX) is a leading energy exchange which builds secure, successful and sustainable commodity markets worldwide – together with its customers. As part of EEX Group, a group of companies serving international commodity markets, it offers contracts on Power, Natural Gas and Emission Allowances as well as Freight and Agricultural Products. EEX also provides registry services as well as auctions for Guarantees of Origin, on behalf of the French State.
About EEX Group’s Environmental Markets
EEX Group has over 15 years of experience in operating environmental markets and offers the largest portfolio of environmental contracts worldwide. Relating to carbon emissions, this includes spot and derivatives markets in the European Emissions Trading Scheme (EU ETS), regulated markets in the United States for carbon allowances, offsets in California and the North Eastern Regional Greenhouse Gas Initiative (RGGI), as well as supporting the primary auction market for the New Zealand ETS (in collaboration with New Zealand Exchange).
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