HKEX Announces the First Carbon Futures ETF in Hong Kong

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to welcome Hong Kong's first carbon futures ETF to its markets. The CICC Carbon Futures ETF listed today extends the coverage of Hong Kong-listed commodity ETFs to carbon credits, an important asset class in the global drive to achieving carbon neutrality.

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Managed by China International Capital Corporation Hong Kong Asset Management Limited, the new ETF tracks the ICE EUA Carbon Futures Index (Excess Return), which measures the performance of a long-only basket of European Union Allowance (EUA) futures contracts.

HKEX's Head of Exchange Traded Products Brian Roberts said: "Climate change and decarbonisation have been areas of increasing focus for investors worldwide. The launch of a carbon strategy ETF in Hong Kong opens up new opportunities for investors to participate in the reduction of carbon emissions in a convenient and cost effective way, adding to the vibrancy of our ETF product ecosystem."

Increasing investor awareness has been driving strong asset growth in Hong Kong-listed ESG ETFs. The market capitalisation of ESG ETFs increased 84 per cent in 2021 to $4.5 billion by year-end, while their average daily turnover (ADT) registered $40.9 million in 2021, more than double that of 2020.

As of February 2022, 157 Exchange Traded Products (ETPs, ETFs plus Leveraged and Inverse Products) were listed on HKEX, with a market capitalisation of $423.5 billion. Trading momentum in the ETP market has been strong year to date, with ADT growing 15 per cent to $8.9 billion in the first two months of 2022 from $7.7 billion in the full year of 2021.