Macro Trend of the Decade
KraneShares' Head of Climate Investments, Luke Oliver, and Climate Finance Partners' CEO, Eron Bloomgarden, provide a deep dive into the carbon markets. As our world transitions towards a future powered by renewable energy, we are still challenged with scaling up and reducing the costs of these technologies. With that in mind, governments globally are strengthening their climate action and increasingly turning to carbon pricing mechanisms to financially incentivize decarbonization.
We are seeing regions adopt accelerated emissions reduction targets and, in response, several new reforms to adjust their emission trading systems through various supply tightening measures, which is creating upward pressure on carbon prices.
Moreover, allocating to carbon markets can provide a hedge to equity holdings within portfolios, which are becoming more exposed to the rising price of carbon. In our view, investing in carbon is an unprecedented opportunity to participate in the macro trend of the decade, where early investors can potentially benefit from the markets' structural upside, portfolio diversification*, and impact factor.
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*Diversification does not ensure a profit or guarantee against a loss.
The linked video contains Luke Oliver's opinion. It should not be regarded as investment advice or a recommendation of specific securities.