KraneShares Launches New Carbon Allowance ETFs

Asset management firm KraneShares has announced in a press release the launch of two new targeted ETFs within the carbon allowances markets: the KraneShares European Carbon Allowance ETF and the KraneShares California Carbon Allowance ETF . Many countries and regions have adopted cap-and-trade programs for carbon emissions that set limits on how much carbon an individual company can emit before having to purchase allowances to offset additional emissions. The markets currently invested in by KraneShares have cap-and-trade programs set against emissions limits in accord with the Paris Agreement. By creating such programs, investors and markets can work together to put pressure on companies to curb emissions as it gets increasingly more expensive to exceed the emissions limit. Both funds join the growing suite of ETFs focused on carbon allowances alongside the KraneShares Global Carbon ETF { % etf (KRBN) %}, which takes a global approach to investing in carbon markets. KRBN currently invests in the EU and North American markets, whereas the two new funds will each target one market alone. “Through the phenomenal success of KRBN, we learned that many of our clients also want targeted exposure to the underlying markets,” said Luke Oliver, managing director and head of strategy at KraneShares. “KEUA and KCCA provide access to the component carbon allowance markets at various stages of their growth cycle. With these new ETFs, investors can take a customizable precision-approach to invest in carbon markets.”