KraneShares Global Carbon Strategy ETF

KRBN

Market cap $168M

KRBN offers unique exposure to the global carbon credit market, providing portfolio diversification and a hedge against rising carbon costs for industrial assets. Key drivers for higher carbon prices include stricter EU emissions targets, US electricity demand growth, and tightening allowance supply across major markets. Despite recent price declines, I believe we've reached an inflection point, with economic recovery and policy tightening likely to drive carbon prices higher.

It's a distressing time for the climate industry in the U.S. as the current administration attempts to erase decades of energy transition progress. However, despite political pressure and related negative sentiment, the fundamentals for renewable energy keep it relevant in an age of increasing AI demand.

U.S. trade policy continues to wreak havoc on global markets, impacting a range of asset classes. Carbon allowances experienced drawdowns leading up to the rollback of country-specific tariffs, with uneven impacts to different regions.

Natural gas prices in Europe proved volatile for much of the first quarter on potential peace talks and lower seasonal demand. EU carbon allowances, closely correlated to natural gas prices, proved equally volatile, but offer a notable long-term investment case.

European Union carbon allowances kicked off the year with a strong start, and remain on the move in February. Investors looking to capture gains happening in Europe's major carbon markets should consider the KraneShares carbon ETF suite.

2025 will likely bring with it a number of changes for markets, including carbon markets. Here's a guide to the top 5 fundamental drivers KraneShares predicts for carbon markets this year, discussed in their Carbon Market Now blog.

The incoming administration will bring with it a regime shift across many arenas. Included in expected policy shifts are climate initiatives, likely to take a backseat under a second Trump presidency.

Washington state's carbon market cleared a notable hurdle in November, receiving significant support from voters for its continuation. The KraneShares Global Carbon Strategy ETF (KRBN) now invests in Washington's regulated carbon allowance market, the only fund to do so.

NEW YORK, Dec. 09, 2024 (GLOBE NEWSWIRE) -- Krane Funds Advisors, LLC (“KraneShares”), an asset management firm known for its global exchange-traded funds (ETFs), announced that it added Washington state's cap-and-trade carbon allowance market to the KraneShares Global Carbon Strategy ETF (Ticker: KRBN) . Washington carbon allowance (WCA) futures now represent a 5% weight in KRBN.

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