News Releases
Barclays Capital launches first Global Carbon Index
LONDON – Barclays Capital, the investment banking division of Barclays Bank PLC, today announced the launch of the Barclays Capital Global Carbon Index (“BGCI”). The BGCI tracks the performance of carbon credits associated with the world’s major greenhouse gas emissions trading schemes.
This is the first time that such an index has been made available to asset managers, private banks and institutional investors looking for a comprehensive benchmark for the rapidly growing carbon emissions markets. The index is governed by the Barclays Capital Environmental Markets Index Committee, a newly formed independent body comprising representatives from the carbon industry and members of the institutional investment community. The Committee has been mandated to provide oversight to the development of the BGCI.
The BGCI initially comprises a combination of two sub-indices which track the performance of the carbon credits associated with the EU Emissions Trading Scheme (EU Allowances) and the Kyoto Clean Development Mechanism (Certified Emission Reductions). The Index will incorporate new schemes as they develop around the world.
“The BGCI adds to our growing family of benchmark index products and demonstrates Barclays Capital’s commitment to meeting investors’ needs for benchmarking and diversification in new asset classes. We plan on adding to the family over time to cover other emissions related schemes,” commented Waqas Samad, Head of Index Products at Barclays Capital.
Commenting on the launch, Harshika Patel, Head of Environmental Markets Product and Business Development, said: “Investors are increasingly seeking exposure to new commodity underlyers to diversify their portfolios. The BGCI offers investors direct and transparent access to the global carbon arena, which has the potential to become one of the world’s largest and most important commodities markets and we have recently expanded our team to reflect that.”
Louis Redshaw, Head of Environmental Markets, added: “The launch of this index is an important development in our environmental markets product offering. As we move towards the launch of the first phase of the
Barclays Capital will provide support and analytics for these indices via Barclays Capital’s index website and other e-commerce channels, including Bloomberg. The indices are calculated daily and use standard settlement prices and market calendars most appropriate for international investors. Complete index rules are available in Barclays Capital’s new Barclays Capital Global Carbon Index Guide.
Ends
For further information, please contact:
Will Bowen, Barclays Capital Communications
+ 44 20 7773 3250
will.bowen@barclayscapital.com
Kristin Friel, Barclays Capital Communications
+1 212 412 7521
kristin.friel@barclayscapital.com
Notes to editors:
About Barclays Capital’s BGCI Index
The Barclays Capital Global Carbon Index measures the performance of the most liquid greenhouse gas credit schemes. Each eligible scheme is represented in the index by the most liquid instrument available in the market place. Index weights and hedging instruments are determined by the index sponsor, with the agreement of the independent Barclays Capital Global Carbon Index Committee.
Barclays Capital has set up an independent committee to approve the rules and methodology of its Environmental Markets Indices. The committee will also provide oversight of the indices and act as strategic adviser to Barclays Capital in regard to Environmental Markets Indices.
The committee consists of three members from Barclays Capital and five representatives from the carbon industry and the institutional investment community: Stichting Pensionfonds ABP, Barclays Global Investors (BGI), Kolibri Capital, The Pacific Investment Management Company (PIMCO) and New Carbon Finance.
At its inaugural meeting, the committee approved the composition of the newly launched Barclays Capital Global Carbon Index (BGCI) by agreeing an 80:20 split between EUAs and CERs.
About Recent Hires to the Emissions trading team at Barclays Capital
In recent weeks, Barclays Capital has hired six people into its Environmental Markets business, further underpinning its commitment to the rapidly developing emissions trading market.
Chris Leeds, previously Head of Environmental Markets at Merrill Lynch, joined as Head of Environmental Markets Sales, coordinating global carbon client interaction.
The Global Chief Operating Officer of the Commodities business at Barclays Capital, Harshika Patel, has moved into a new position as Head of Environmental Markets Product and Business Development. This new role is designed to ensure that the firm continues to offer its clients innovative carbon products as the markets continue to evolve.
Jan-Willem Martens, Michiel ten Hoopen, Vincent Helfferich and Michael Berends join from Ecosecurities, with responsibility for accelerating the growth of our award winning CER (“Certified Emission Reduction”) origination and sales business. They have many years of CDM (“Clean Development Mechanism”) market experience, in particular Jan-Willem and Michiel, who are members of the UNFCCC Methodology Panel and the Small-Scale Panel of the CDM Executive Board, respectively.
About Barclays Capital’s Environmental Markets offering
As a leading provider of financial and commodity risk management solutions to industry, funds and investors, Barclays Capital has quickly established itself as an award-winning intermediary in the environmental markets by applying our banking experience in the following areas:
- Market access and intermediation: the provision of a “route to market” for participants looking to buy and sell allowances and project credits
- Risk management and structuring: the development of trading strategies and risk management products enabling market participants to manage the volume and price risks associated with their emissions portfolios
- Financing and investment: the provision of debt and equity finance for emission reduction projects and the provision of finance against emission allowance holdings
- Investor Solutions: Barclays Capital launched some of the first investment vehicles to meet the needs of investors’ growing appetite for exposure to GHG prices
Barclays Capital has been recognised as a key player in the emissions trading market through various industry awards, including:
- Named Emissions Trading House of the Year– The Banker Investment Banking Awards (October 2007)
- Voted #1 in European Emissions Trading – Risk Energy & Commodity rankings (Feb 2006 and March 2007)
- Voted #1 in CER Trading – Risk Energy & Commodity rankings (March 2007)
- Voted Best Trading Company – Point Carbon Carbon Market Awards (March 2006 and March 2007)
- Voted Best Trading Company, EU Emissions Trading Scheme – Environmental Finance magazine (December 2006)
About Barclays Capital
Barclays Capital is the investment banking division of Barclays Bank PLC which has an AA long-term credit rating and a balance sheet of over £1.1 trillion (US$2.3 trillion*). With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with solutions to their financing and risk management needs. Barclays Capital has offices in 26 countries, employs over 15,700 people and has the global reach and distribution power to meet the needs of issuers and investors worldwide.
For further information about Barclays Capital, please visit our website www.barclayscapital.com.
*
