CDC Ixis will launch a fund to exploit the carbon emission rights market. The European Carbon fund (...
CDC Ixis will launch a fund to exploit the carbon emission rights market. The European Carbon fund (ECF) will launch on 9 February 2005.
Structured by the financial engineering department of Ixis Corporate & Investment Bank, the fund will purchase carbon dioxide emission allowances and provide the coverage required by the 12,000 facilities subject to greenhouse gas regulation.
The mutual fund will be active on and provide liquidity for the emission quotas and credits market, which was launched 1 January 2005 by the European Union.
The emission quotas and credits market is a e20bn emission trading market, embracing 25 countries and 13,000 industrial facilities, mostly in the power, refining, cement and metals sectors.
Laurent Segalen, director of investment funds at Ixis, said: "The market started with thin volumes but will grow over time as more players enter."
The ECF will invest in certified emission reductions, emission reduction units, EU allowances and their derivatives. The fund's managers plan to contract carbon assets from between 15 and 20 projects from high-grade counterparties.
The ECF is an eight-year, (2005-2012) closed-ended investment company incorporated in Luxembourg. The Sicav has a subscription target of e100m and Fortis Bank is investing e15m and will act as joint promoter with Caisses des Depots that invested e25m.
£300bn of liabilities
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Appointed by FCA and PSR boards