XShares Advisors came to an agreement with the Chicago Climate Exchange to develop exchange traded funds (ETFs) based on carbon emission credits. Aaron Siegal of Investment News reports these credits allow firms and other organizations the right to emit a stated amount of carbon dioxide over a specified time period. Organizations that emit more carbon emissions than credited will have to buy credits from firms who produce less than their allotted amount, thus having extra credits left over.
According to PR Newswire, the Chicago Climate Exchange Inc. is the world’s first, and North America’s only legally binding and rules-based greenhouse gas emissions allowance trading system, based on all 6 greenhouse gasses. Hopefully, if anything else, this will give more companies incentives not to pollute.
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