This summer broke heat records yet again, for the second consecutive year. 2024 remains solidly on track for becoming the hottest year on record, underscoring the importance of climate initiatives. For investors, harnessing the global push to decarbonize provides a number of unique opportunities.
The last few months went down as the hottest since recording began in 1940 according to Copernicus Climate Change Service, an EU climate watchdog. In the northern hemisphere, summer (June-August) clocked in 0.69°C hotter than 1991-2020 averages over the same three months. It beat out last year’s record heat by 0.03 degrees. Meanwhile in the southern hemisphere, Australia recorded its hottest day in August at 41.6°C (106.9F) and regions in Antarctica rose 50°F over their July averages.
Also of note, August 2024 registered 1.51°C hotter than pre-industrial levels (1850-1900). It’s the 13th month out of the last 14 that average global surface air temperatures exceeded 1.5°C. While El Niño weather patterns that result in warmer temperatures likely contributed, emissions from human activities continue to exacerbate global warming trends.
“The temperature-related extreme events witnessed this summer will only become more intense, with more devastating consequences for people and the planet unless we take urgent action to reduce greenhouse gas emissions,” according to the.
Record heat alongside increasing, intense weather activity continues to draw public attention. As governments enact greater emissions reduction and climate-centric policies, there exists opportunity for investors looking to harness the energy transition.
Invest in the Climate Transition With KraneShares
KraneShares offers a suite of ETFs focused on harnessing the investment potential in a decarbonizing world. The firm has three funds with exposure to some of the largest regulated carbon markets. These include the broadly focused KraneShares Global Carbon Strategy ETF (KRBN ), and the targeted KraneShares European Carbon Allowance Strategy ETF (KEUA ) and +KraneShares California Carbon Allowance Strategy ETF+ (KCCA ).
See also: Father of Carbon Trading’ Puts Markets in Perspective
Within commodities, the KraneShares Electrification Metals Strategy ETF (KMET ) provides exposure to the metals critical to the energy transition. The newly launched KraneShares Sustainable Ultra Short Duration Index ETF (KCSH ) provides short-term bond exposure while screening for sustainability practices.
On the equity side, the KraneShares Electric Vehicles and Future Mobility Index ETF (KARS ) seeks to capture EV manufacturers and related businesses. The KraneShares Rockefeller Ocean Engagement ETF (KSEA ) also offers equity exposure to those businesses within the “blue economy” that work to improve ocean health.
For more news, information, and analysis, visit the Climate Insights Channel.
