KraneShares Launches Global Carbon Strategy ETC (KRBN) on Borsa Italiana & Deutsche Börse Xetra Stock Exchanges

The KraneShares Global Carbon Strategy ETC (KRBN) is intended to track the level of its reference index, the S&P Global Carbon Credit Index, which offers broad coverage of cap-and-trade carbon allowances by tracking the most traded carbon credit futures contracts. These CO2 allowances trade under cap-and-trade programs known as Emissions Trading Systems (ETS). These are systems aimed at limiting greenhouse gas emissions, particularly carbon dioxide, where a cap or limit is set, establishing the maximum amount that can be emitted by participating companies. These systems are distinct from project-based carbon offsets as they create transparent, liquid markets that are government mandated and regulated. Carbon allowance supply is managed by government agencies and adjusted primarily through an annually declining cap. The value of these markets reached nearly one trillion USD in 2023.¹  

The S&P Global Carbon Credit Index introduces a new measure for hedging risk and going long the price of carbon while supporting responsible investing. Currently, the index covers the major European and North American cap-and-trade programs: European Union Allowances (EUA), California Carbon Allowances (CCA), United Kingdom Allowances (UKA), and the Regional Greenhouse Gas Initiative (RGGI), which covers the Northeast US Power Market.

"KraneShares is a global leader in carbon market ETFs. We launched the first, largest, and most liquid carbon ETF on the New York Stock Exchange in 2020 in partnership with Climate Finance Partners (CLIFI).² We are excited to expand access to this critical market through our new KRBN ETC listing on the Italian and German Exchanges," said KraneShares Head of Climate Investments Luke Oliver. "We believe carbon allowances provide a compelling investment opportunity because they offer low correlations and a structural upside that does not exist in other traditional commodity allocations."

"We believe carbon allowances can play an important role in every investor's portfolio. They are structurally designed for long-term price appreciation as part of their core application of decreasing emissions," said Dr. Xiaolin Chen, Head of International at KraneShares. "Besides the potential portfolio benefits, allocating to carbon supports price discovery and liquidity in the markets, which we believe promotes sustainability and true environmental impact. We are proud to bring our KRBN ETC to European investors."

For more information on the KraneShares Global Carbon Strategy ETC (Ticker: KRBN), please visit https://kraneshares.eu/krbnln or consult your financial advisor.

Citations:

1. Reuters, “Global carbon markets value hit record $909 bln last year,” Feb 7, 2023.
2. Data from Bloomberg as Aug 31, 2024

About KraneShares

KraneShares is a specialist investment manager focused on China, Climate, and Alternative Assets. KraneShares seeks to provide innovative, high-conviction, and first-to-market strategies based on the firm and its partners' deep investing knowledge. KraneShares identifies and delivers groundbreaking capital market opportunities and believes investors should have cost-effective and transparent tools for attaining exposure to various asset classes. The firm was founded in 2013 and serves institutions and financial professionals globally. The firm is a signatory of the United Nations-supported Principles for Responsible Investment (UN PRI).

Risk Disclosures

There is no guarantee that KRBN will achieve its investment objective nor will the reference index fully or successfully hedge risk while having long exposure to the price of carbon or achieve responsible investing. Further risks relating to this investment are disclosed in the KRBN base prospectus, which along with key investor information, is available on: https://kraneshares.eu/krbnln.

This document is intended only for persons residing in jurisdictions where its distribution or availability of KRBN is consistent with local laws and KraneShares' local regulatory authorizations.

For media inquiries, please contact: [email protected]