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The world’s largest carbon emissions ETF tops $ 500 million in its first year of trading

NEW YORK, 4th August 2021 / PRNewswire / – Krane Funds Advisors, LLC (“KraneShares”), an asset management company known for its global exchange traded funds (ETFs) and innovative investment strategies, is pleased to announce that the KraneShares Global Carbon ETF (NYSE: KRBN.)) Has exceeded $ 500 million in assets under management (AUM) within the first year of trading. KRBN is the world’s largest publicly traded ETF for CO2 certificates.1 In addition, KRBN posted a return of 77% on 7/30/21.1

“As KRBN reaches its one-year milestone, it has been one of the best performing strategies since it was launched,” said Jonathan Krane, CEO of KraneShares. “In addition to KRBN’s strong performance, investing in carbon credits can directly reduce carbon emissions by making pollution more expensive for businesses – we believe this makes KRBN an attractive impact investment.”

“Economists agree that the best way to cut emissions and save our planet is to put a price on carbon,” said Eron Bloomgarden, co-founder of Climate Finance Partners, KRBN’s non-discretionary sub-advisors. “We believe the price of carbon emissions must be higher to avert the harmful effects of climate change.”

One of the main goals of the Paris Climate Agreement is to limit global average temperatures to no more than 1.5 degrees Celsius above pre-industrial levels, a widely accepted threshold for averting a global climate catastrophe. The Organization for Economic Co-operation and Development (OECD) sees a central estimate of $ 147 by 2030 to enable net zero emissions by 2050. IHS Markit is currently quoting the global CO2 price $ 33.85.2

Today KRBN holds over 15,000 CO2 futures contracts3, which equates to over 15 million tons of CO2 emissions. This equates to the annual emissions of over three million cars4 or more cars than the state as a whole Michigan.5 As KRBN grows, so does its potential to help the environment.

With rising prices for emissions, the global CO2 markets are also expanding. The UK launched its own domestic emissions trading system (ETS) in late May and China started theirs in July.

“Although the EU market is now 15 years old, we believe that global carbon markets are just beginning,” said Richmond Mayo-Smith, founder of Climate Finance Partners. “This is a really exciting time to be an investor in carbon credits. With KRBN, we have democratized access to these historically inaccessible markets.”

KRBN is compared to IHS Markit’s Global Carbon Index, which offers broad coverage of cap-and-trade certificates by mapping the most liquid segment of the tradable futures markets for CO2 certificates. The index introduces a new measure of risk hedging and long positioning of the carbon price while at the same time promoting responsible investment.6 The index currently covers the most important European and North American cap-and-trade programs: European Union Allowances (EUA), California Carbon Allowances (CCA) and the Regional Greenhouse Gas Initiative (RGGI).

For more information on KRBN, please visit https://www.kraneshares.com/krbn or email [email protected]

KRBN performance history as of 07/30/2021:

Average annualized%

1 year

Since its founding

Fund NAV



Closing price






Total operating cost of the fund: 0.79%. Launch date: 07/30/2020.

The performance data given represent past performance. Past performance does not guarantee future results. The return on investment and the net present value of an investment fluctuate, so that when an investor’s shares are sold or redeemed, they may be worth more or less than their original acquisition costs and the current performance may be lower or higher than the stated performance. For up-to-date performance data up to the end of the month, please visit www.kraneshares.com.

It is unusual for the Fund to have high short-term performance and investors should not expect such performance to repeat itself.

Index returns are for illustrative purposes only. The returns on index performance do not reflect management fees, transaction costs or expenses. Indices are not managed and you cannot invest in an index directly.

About KraneShares
Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. Our suite of China-focused ETFs offer investors capture solutions China Importance as an essential element of a well-designed investment portfolio. We strive to deliver innovative first-to-market strategies that have been developed based on our strong partnerships and our in-depth investment knowledge. We help investors stay up to date on global market trends and strive for meaningful diversification. Krane Funds Advisors, LLC, is a signatory to the United Nations-Endorsed Principles for Responsible Investment (A PRI). The company is majority-owned by China International Capital Corporation (CICC).

About Climate Finance Partners
Climate Finance Partners (CLIFI) is acting as a non-discretionary sub-advisor to KRBN. CLIFI offers innovative climate finance solutions and investment products to meet capital needs for emerging environmental challenges. CLIFI is led by a team of investment professionals with extensive experience in traditional investments and environmental finance. The chairman of the advisory board is the Nobel Prize winner, Robert Engle.


1. Data from Bloomberg 07/30/2021
2. Data from IHS Markit 07/20/2021
3. Data from StoneXS 07/22/2021
4. Data from EPA.gov, Greenhouse Gas Equivalencies Calculator
5. Statista data, number of registered automobiles in Michigan accessed in 2016 by type 07/23/2021
6. IHS Markit, “A Global Price for CO2 Emissions”, April 2020

Important Notes

Before investing, carefully consider the investment objectives, risk factors, fees and costs of the funds. This and other information can be found in the full and summary prospectus for the funds, which is available at www.kraneshares.com/krbn. Read the prospectus carefully before investing.

Risk warnings
Investing involves risks, including possible capital losses. There can be no guarantee that any Fund will achieve its stated objectives.

KRBN is subject to liquidity risk, which means that it can become difficult to buy or sell certain investments at a reasonable time and price. If a transaction is large for these securities it may not be able to be initiated which could result in losses for the Fund.

KRBN relies on the existence of cap and trade regulations. There is no guarantee that cap and trade regulations will continue to exist or prove to be an effective way of reducing greenhouse gas emissions. Changes in US law and related regulations could affect the way the Fund operates, increase the Fund’s costs, and / or change the competitive landscape. Funds may outperform other similar funds that fail to consider corporate / ESG guidelines when making investment decisions.

KRBN invests through a subsidiary and is indirectly exposed to the risks associated with the investments of the respective subsidiary. Since the subsidiary under the law of Cayman Islands and is not registered with the SEC under the Investment Company Act of 1940, therefore, the Fund will not receive all of the protections offered to shareholders of registered investment companies.

KRBN and its subsidiary are considered pools of commodities upon commencement of business and are regulated under the Commodity Exchange Act and the CFTC rules. Commodity pools are subject to additional laws, regulations and enforcement guidelines that increase compliance costs and may affect the operation and performance of the Fund and the subsidiary. Futures and other contracts may need to be liquidated at inconvenient times or prices to prevent the Fund from exceeding the applicable position limits set by the CFTC.

The value of a commodity-linked derivative investment is typically based on the price movements of a physical commodity and can be affected by changes in overall market movements, index volatility, changes in interest rates, or factors affecting a particular industry or commodity.

Investments in non-US instruments can involve the risk of loss due to currency fluctuations and political or economic instability. It is expected that the Fund’s assets will be concentrated in one industry or group of industries, provided that the index focuses on a particular industry or group of industries. KRBN is not diversified.

Fund units are bought and sold on a stock exchange at the market price (not at the NAV) and are not redeemed individually by the fund. Shares may, however, be redeemed directly by certain authorized broker-dealers (authorized participants) in very large issue / redemption units at NAV. The returns shown do not represent the returns you would get if you had traded stocks at other times. Shares may trade on the secondary market at a premium or discount to their NAV. Brokerage commissions reduce the return. As of 12/23/2020, the price returns will be based on the official closing price of an ETF share or, if the official closing price is not available, the midpoint between the national best bid and the national best offer (“NBBO”) as calculated by the ETF at that time the current NAV per share. Before that date, market price returns were based on the middle between the bid and ask prices. The net asset values ​​are calculated using prices from 4:00 p.m. Eastern Time.

The KraneShares ETFs are distributed by SEI Investments Distribution Company (SIDCO), which is not affiliated with Krane Funds Advisors, LLC, the Fund’s investment advisor, any sub-advisors to the Funds, or Bloomberg Index Services Limited.

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SOURCE Krane Funds Advisors, LLC

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