KraneShares Launches Global Carbon Strategy ETC (KRBN) on LSE

Our London listing follows the successful listings on the Borsa Italiana and Deutsche Börse Xetra.

The KraneShares Global Carbon Strategy ETC (KRBN) is intended to track the level of its reference index, the S&P Global Carbon Credit Index, which offers broad coverage of cap-and-trade carbon allowances by tracking the most traded carbon credit futures contracts. The S&P Global Carbon Credit Index introduces a new measure for hedging risk and going long the price of carbon while supporting responsible investing.

Currently, the index covers the major European and North American cap-and-trade programs: European Union Carbon Allowances (EUA), California Carbon Allowances (CCA), United Kingdom Carbon Allowances (UKA), Washington State Carbon Allowances (WCA), and the Regional Greenhouse Gas Initiative (RGGI), which covers the Northeast US Power Market.

“KraneShares is a global leader in carbon market ETFs. We launched the first, largest, and most liquid carbon ETF on the New York Stock Exchange in 2020 in partnership with Climate Finance Partners (CLIFI). We are excited to expand access to this critical market through our new KRBN ETC listing on the London Stock Exchange,” said KraneShares Head of Climate Investments Luke Oliver. “We believe carbon allowances provide a compelling investment opportunity because they offer low correlations and a structural upside that does not exist in other traditional commodity allocations.”

“We believe carbon allowances can play an important role in every investor’s portfolio. They are structurally designed for long-term price appreciation as part of their core application of decreasing emissions,” said Dr. Xiaolin Chen, Head of International at KraneShares. “Besides the potential portfolio benefits, allocating to carbon supports price discovery and liquidity in the markets, which we believe promotes sustainability and true environmental impact. We are proud to extend our KRBN ETC range, which includes Borsa Italiana and Deutsche Börse Xetra listings, to the London Stock Exchange for UK investors.”

What are carbon allowances?

Compliance carbon allowances trade under cap-and-trade programs known as Emissions Trading Systems (ETS). These systems create transparent, liquid markets that are government-mandated and regulated. The value of these markets reached nearly one trillion USD in 2023.² Carbon allowances are distinct from project-based carbon offsets and offer a market-based approach to regulating a region’s emissions, with mandatory participation for specified industries. Carbon allowance supply is managed by government agencies and adjusted primarily through an annually declining cap.