Barclays Launches iPath Targeting Carbon Emissions

Murray Coleman
June 26, 2008

Besides ETN for carbon emissions, Barclays issues notes covering 10 subindexes of the DJ-AIG Commodities benchmark.


Barclays on Thursday launched 11 new exchange-traded notes through itsiPaths lineup, including a much-anticipated fund tracking carbon emissions.

Others have also been racing to get a similar alternative energy ETF or ETNout the door. But the notes, underwritten by the giant London-based bank, hasgained first-mover status in what no doubt will be a hotly contested field.

Linked to the Barclays Capital Global Carbon Index Total Return, the iPathGlobal Carbon ETN (NYSE Arca: GRN) is the first ETN designed to provideinvestors with exposure to the global price of carbon.

With global warming gaining increasing attention and being addressed withnew urgency, indexes are being created to capture the market for trading carbonin world markets.

Such so-called carbon emission credits are traded by companies who get taxbreaks and other incentives for lowering pollutants into the air. Thesestandards are designed to set limits on the amount of a pollutant that can bereleased into the atmosphere and allocates credits among companies creatingemissions. Those that do not use all their emissions credits can sell them tocompanies that need them.

By some estimates, the global carbon market is worth more than $50 billion ayear.

XShares has in registration an exchange-traded fund to invest in futurescontracts traded in the European Union based on carbon emissions allowances.

Besides GRN, the 10 others introduced carve up the Dow Jones-AIG CommodityIndex Total Return into subsectors:

  • iPath Dow Jones-AIG Tin Total Return Sub-Index ETN (NYSE Arca: JJT)
  • iPath Dow Jones-AIG Sugar Total Return Sub-Index ETN (NYSE Arca: SGG)
  • iPath Dow Jones-AIG Softs Total Return Sub-Index ETN (NYSE Arca: JJS)
  • iPath Dow Jones-AIG Precious Metals Total Return Sub-Index ETN (NYSE Arca: JJP)
  • iPath Dow Jones-AIG Platinum ETN Total Return Sub-Index (NYSE Arca: PG)
  • iPath Dow Jones-AIG Lead ETN Total Return Sub-Index (NYSE Arca: LD)
  • iPath Dow Jones-AIG Cotton Total Return Sub-Index ETN (NYSE Arca: BAL)
  • iPath Dow Jones-AIG Coffee Total Return Sub-Index ETN (NYSE Arca: JO)
  • iPath Dow Jones-AIG Cocoa Total Return Sub-Index ETN (NYSE Arca: NIB)
  • iPath Dow Jones-AIG Aluminum Total Return Sub-Index ETN (NYSE Arca: JJU)





Massive inflows into U.S. equity funds on Monday, Dec. 22, propelled total ETF assets to a new record.

'SPY' raked in more than $12 billion Monday, Dec. 22, pacing State Street's issuer-leading inflows on the day, as total U.S.-listed ETF assets jumped to $2.005 trillion.


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