FRANKFURT, Sept 23 DWS, the mutual fund unit of
Deutsche Bank AG (DBKGn.DE), on Tuesday unveiled a fund for
private investors in carbon dioxide (CO2) emission rights and
The fund is managed by investment firm Acquila Capital of
Hamburg, which will use the research and market expertise of
First Climate, a carbon asset management firm and consultant to
international organisations, based near Frankfurt.
"The CO2 market is in an early development phase. As an
investment house and pioneer for alternative investments, we
know that opportunities and possible uncertainties can be very
high. This makes professional management all the more
important," said Dieter Rentsch, managing partner at Aquila, in
A spokeswoman for Aquila said the fund would invest directly
in European emissions allowances (EUAs), where it was taking a
Tradable EUAs are issued to industry covered by Europe's CO2
mandatory emissions trading scheme.
In addition, the fund will also bet on spread opportunities
between EUAs and certified emission reductions (CERs), which
polluters that must comply with the scheme can buy from CO2
savings made more cheaply overseas, she said.
The fund will also seek to exploit spread opportunities
between EUAs and Emission Reduction Units (ERUs), which are
mainly generated in eastern European countries.
It will also pursue opportunity trades between CO2 and other
fuels, and seek to bet on possible falls in the CO2 price up to
2020, if carbon capture and storage (CCS) technologies
materialise and provide polluters with opportunities for CO2
Fund certificates have been available since Monday.
There was no specific target volume but it was estimated
that the fund could attract investments of 250 million euros
($369 million), the Aquila spokeswoman said.
(Reporting by Vera Eckert; editing by Christopher Johnson)