WisdomTree has launched Europe’s first exchange-traded product (ETP) that allows investors to gain exposure to the performance of California Carbon Allowances (CCA).
The WisdomTree California Carbon ETP (WCCA), listed today on the London Stock Exchange and Borsa Italiana with a management expense ratio of 0.49%. WCCA will list on Börse Xetra on 20 April 2023. The fund follows movement in the price of ICE California Carbon Allowance Futures through the Solactive California Carbon Rolling Futures TR Index.
California Carbon Allowances are issued by the California Air Resources Board as part of their Cap-and-Trade Emissions Trading System (ETS), a markets-based system aimed at mitigating climate change and reducing global greenhouse gas (GHG) emissions. Since beginning in 2013, the ETS has expanded by linking with the province of Quebec to cover emissions from both jurisdictions. The CCA market has been one of the fastest growing and is the second most liquid carbon allowance market globally. In 2022, CCA futures traded around $1.7 billion per month.