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WisdomTree Releases California Carbon Allowance ETP

New York-based WisdomTree has issued the WisdomTree California Carbon ETP (WCCA), Europe’s first exchange-traded product that allows investors to gain exposure to the performance of California Carbon Allowances (CCA). The ETP is listed on the London Stock Exchange, Borsa Italiana and Börse Xetra, with a management expense ratio of 0.49%. WCCA seeks to reflect the movement in the price of ICE California Carbon Allowance Futures. California Carbon Allowances are issued by the California Air Resources Board as part of its cap-and-trade emissions trading system (ETS) aimed at mitigating climate change and reducing global greenhouse gas emissions. Nitesh Shah, Head of Commodities and Macroeconomic Research at WisdomTree, said: “California has laid out a path to cut emissions aggressively by 2045 and CCAs will play a larger role in the policy toolkit than ever before.” California’s ETS is one of the largest multi-sector emissions trading systems globally, covering roughly 80% of Californian’s greenhouse gas emissions. The CCA market has been one of the fastest growing and is the second most liquid carbon allowance market globally. Alexis Marinof, Head of Europe at WisdomTree, said: “WCCA removes many of the barriers investors face when allocating to this asset class and builds on WisdomTree’s heritage of bringing hard-to-access exposures to investors through ETPs.” 

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