Carbon Allowances

Climate Suite Introduction Video


KraneShares, which was established in 2013, initially focused on China and emerging markets, has now launched its full climate suite of products. That includes the very first most liquid carbon ETF.1 It also includes transition equities, and also the natural resources that will be required to take part in the $100 trillion climate cycle of capital that will be needed to reverse climate change. So, we're very excited to offer not just our expertise in global markets, but also, very specifically, in impact and climate investing.

KRBN is the global carbon strategy, and that ETF is a first-to-market offering that gives investors access to the cap-and-trade programs. These cap-and-trade programs, whether it be the European Union, the California market, which is paired with Canada, the northeast of the US, which is named RGGI, or even the UK carbon market, we give a diversified* exposure to these carbon allowances. Now, what carbon allowances are, are the cap-and-trade programs where these individual economies at a completely transparent regulatory level have set caps on pollution, and then over time, will reduce those caps. That means that these allowances, essentially permits on carbon, will rise in value, as demand for these allowances stays consistent as supply dries up. So, being long carbon markets gives you an almost pure play on tightening climate regulation, and that's why we're especially excited to offer KRBN as an ETF. Not to mention the fact that carbon allowances do not correlate with most other traditional asset classes. So, you have something that is potentially geared for upside, has low correlations, and has impact, and that's why the climate suite at KraneShares is proven so popular with investors looking for these types of solutions.

In addition to offering the investment products, we also offer education, and deep insights from our bench of great experts in the field, including Robert Engle, Nobel Prize-winning economist, or Eron Bloomgarden, who is a deep industry expert from Climate Finance Partners, as well as the resources of our partners at IHS Markit and the S&P, amongst many others. And so, we're very proud to publish a weekly blog,, where you can sign up today, as well as white papers, webinars, as well as attending various conferences and events. So, we look forward to educating you and helping you make decisions around how to deploy capital in the climate investing space. So, thank you very much.

1. Data from Bloomberg, as of 01/25/2023
* Diversification does not ensure a profit or guarantee against a loss.