The AI-driven data-center boom emerged as a major theme for carbon markets in Q2, with the Northeastern US carbon market (RGGI) emerging as the standout performer. RGGI surged on news that Virginia, a major global data-center hub, would reenter the program on July 1, bringing rapidly growing power demand and emissions into the market.

European allowances recovered most of their Q1 losses ahead of the European Commission’s long-awaited EU ETS Review, published July 17, while UK allowances tracked Europe higher as momentum toward UK-EU linking continued to build. In California, the regulator’s approval of its cap-and-invest reform package removed a major overhang that had weighed on the market for nearly two years, clearing the way for implementation as soon as September 1.

Overall, KRBN returned 12.5% in Q2, with four of its five underlying markets posting gains. In this Summer 2026 Carbon Quarterly Commentary, we examine the key market dynamics, policy developments, and structural trends driving performance across the five carbon markets represented in the Global Carbon Credit ETF.

For KRBN top 10 holdings, risks, and other Fund information, please click here.