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UBS Blue Sea



UBS has designed the first fully integrated greenhouse index that takes into account both Carbon Emissions and Weather.

The market mechanisms of the Kyoto Protocol* have created a new source of financing for projects that reduce emissions of greenhouse gases. Wind power, biomass, energy efficiency, landfill gas utilisation, and forestry are some of the sectors that are benefiting from the availability of carbon finance through the Clean Development Mechanism (CDM), Joint Implementation (JI), and emerging national schemes.

The UBS Greenhouse Index (UBS-GHI) and its family of sub-indices are designed to serve the needs of a wide range of investors seeking an efficient and simple way to gain exposure to the greenhouse effect.

Private investors can gain simple exposure to the Weather & Carbon Emission markets on a macro level without having to deal with the complexity of Weather Markets and the regulation intricacies of the Kyoto Protocol Mechanism.

Institutional investors can use the Weather Carbon Emission as Alternative Asset Classes to diversify their portfolio.

Professional investors such as compliance buyers can hedge their total exposure through the main index or through the specialized indices.

 

* The Kyoto Protocol is an agreement made under the United Nations Framework Convention on Climate Change. Its objective is the stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system”. In order to achieve the goals of the Convention the Kyoto Protocol sets mandatory and legally binding targets and timetables for cutting the 1 Energy Information Administration (Official Energy Statistics of the US Government) 16 greenhouse gas emissions of industrialized countries who ratified the Protocol.

As of December 2006 a total of 169 countries and other governmental entities have ratified the agreement (representing over 61.6% of global emissions from Annex I countries).