Recent goings on in the Golden State underscore possible benefits to owning KCCA. The fund debuted in October 2021 and already has $227.62 million in assets under management, confirming there’s appetite for a region-dedicated carbon offset ETF. KCCA follows the IHS Markit Carbon CCA Index, which is comprised of California carbon allowances (CCAs). Such regional focus may appear too nuanced to new investors, but experienced market participants know that California when it comes to state-level carbon reduction efforts. The KraneShares California Carbon Allowance Strategy ETF ( KCCA) can be viewed as the California-focused equivalent to the aforementioned KRBN. BP has acquired a 40 per cent stake in the UK’s Viking CCS project from Harbour Energy as the government looks to accelerate plans to develop carbon capture and storage. “Ultimately, global cooperation between governments is required to address the full scope of this threat, but the private sector and investors can be part of the transition, too.” KraneShares California Carbon Allowance Strategy ETF ( KCCA) “Worldwide emissions must fall by half by 2030 and reach net zero by 2050 to have any chance at keeping the global temperature rise under 1.5 degrees Celsius,” noted Morningstar analyst Hortense Bioy. Add to that, the case for even modest allocations to ETFs like KRBN is on the rise due to massive expenditures needed to meet various emissions reduction goals. That’s saying something when considering carbon investing is just starting to scratch the surface of its attention-gathering prowess. Consider the point volume in the carbon markets tracked by the fund’s underlying index is nearly $700 billion on annual basis. Sure, that makes KRBN young, but youth aside, the ETF is relevant. The clearing price reached 6. Home to nearly $613 million in assets under management, KRBN turns three years old in July. A total of more than 2 million tons of carbon credits were sold to 15 buyers, mainly from Saudi Arabia and other international entities, with Aramco, Saudi Electricity Company, and ENOWA (a subsidiary of NEOM) buying the largest number of credits. The KraneShares Global Carbon Strategy ETF (KRBN), which follows the IHS Markit’s Global Carbon Index, is the largest ETF in this category.
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