US investment bank Merrill Lynch is understood to be pre-marketing a structured emissions product to provide private investors with exposure to the EU allowance price.
I'm pretty sure Carbon Finance has this right.
From the Carbon Markets Insights brochure (the shindig at Javits, Oct. 29-31):
Carbon markets stream
2:00pm Roundtable: Carbon finance 2.0: A new generation of
Moderator: Atle Christiansen Point Carbon
• Carbon and weather
• Structured carbon financial instruments
• Swapping allowances for offsets and vice-versa
Barney Schauble Nephila Capital,
Olivia Hartridge Morgan Stanley,
Seb Walhain Fortis,
Abyd Karmali Merrill Lynch
Oh joy! Structured products!