ETFdb Logo
ETFdb Logo
ETFdb Logo
ETFdb Logo
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Database
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
    • ETFs Future-Forward 2021: An iShares Investing Symposium
    • Three Themes for 2021: An iShares & MSCI Investing Symposium
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. China Insights Channel
  2. Carbon Prices Soar as Investors Flock to Emissions Trading
China Insights Channel
Share

Carbon Prices Soar as Investors Flock to Emissions Trading

Karrie GordonJun 07, 2021
2021-06-07

Growing awareness and recent warming trends have seen companies shifting their environmental efficiency standards, as well as investing in new carbon credit trading, according to the Wall Street Journal.

That could be good news for the KraneShares Global Carbon ETF (KRBN), which tracks the newly flourishing carbon credits market.

Carbon Credit Growth Is Exponential

Investors are moving to the newly created emissions-trading market as global pressure and an increasing focus on ESG within companies gains traction.

In Europe, the carbon credit trading funds market was one of the top-performing commodities-related markets of the past year, surpassed only by lumber.

European carbon credit prices have increased 135% in the past 12 months and have been hitting record highs, as lockdowns begin to ease from the pandemic.

Low inventories of liquid gas, a harsh winter in Europe, and tighter governmental controls all contributed to the increasing prices.

The Intercontinental Exchange, a host to U.S. and European emissions trading, said the number of investors has increased by 85% between 2017 and 2020. Open interest on European emissions contracts specifically hit a record of $105 billion in May 2021.

Carbon credit prices rise as demand increases from companies that use them to offset their carbon emissions. But they also rise when investors bid and increase the price. This in turn makes it more expensive for carbon-producing companies to buy the credits, thereby providing financial pressure for them to reduce their emission output directly.

KraneShares chief operating officer Jonathan Shelon told the WSJ that “demand has grown steadily from both retail investors and professionals who see the investment as a way to profit from tighter regulation and investor pressure on companies to reduce carbon emissions."


Content continues below advertisement

KRBN 1 Year Performance

KRBN: A Way to Invest in the Future

The KraneShares Global Carbon ETF (NYSE: KRBN) tracks the global carbon credits market.

Using the IHS Markit’s Global Carbon Index as a pricing benchmark, the fund tracks the most traded carbon credit futures contracts and “offers for broad coverage of cap-and-trade carbon allowances” per the KraneShares website.

KRBN covers the primary European and North American cap-and-trade programs. Contracts from the European Union Allowances comprise 69% of the fund, while contracts from the California Carbon Allowances comprise 14%. The rest of the exposure is made up of 3 other smaller carbon allowance futures contracts.

The total annual expense ratio for KRBN is 0.79%.

For more news, information, and strategy, visit the China Insights Channel.

Loading Articles...
Help & Info
  • Contact Us
  • About Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

Equity ETF Channel

Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead?

Debbie CarlsonOct 22, 2020
2020-10-22

With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell...

Equity ETF Channel

Portfolio Diversification Isn't Dead, It Was Just Sleeping

Debbie CarlsonOct 15, 2020
2020-10-15

Investors could be forgiven to think there was no reason to invest outside of the U.S. for the...

}
X