Don't miss the opportunity to invest in carbon

At COP 21 in Paris in 2015, the parties to the United Nations Framework Convention on Climate Change (UNFCCC) adopted the Paris Agreement to reduce greenhouse gas emissions. The main goal of the agreement is to limit the increase in global temperature to 1.5 degrees Celsius compared to pre-industrial levels. Scientists believe that this level is the threshold for averting the catastrophic consequences of climate change on the environment and human life. Since 2015, the global decarbonization movement has gained significant momentum, and carbon quotas are an essential tool for achieving these goals.

US Secretary of State John Kerry, with his granddaughter on his lap, signs the COP21 climate change agreement on behalf of the United States  

KraneShares and Climate Finance Partners (CLIFI) launched the first flagship ETF in July 2020 on the New York Stock Exchange, KraneShares Global Carbon ETF (KRBN) . Since then, KRBN has become the largest and most liquid carbon ETF in the world. 

But what are we actually investing in?

Emissions compliance is an emerging asset class whose high performance has recently attracted considerable attention. Carbon compliance is based on cap-and-trade programs, also known as emissions trading systems (ETS), which regulate emissions for mandated industries in their respective jurisdictions and form a new type of investable asset class called carbon allowances or carbon credits.