KRBN ETF

Last month KraneShares announced the launch of its flagship carbon strategy on European exchanges. European investors can now access the KraneShares Global Carbon Strategy ETC (KRBN) on Italian and German Exchanges.

The birthplace of coal power generation announced the end of an era as it shut down its last remaining coal plant. The U.K. is the first G7 member to phase out of coal reliance in a world transitioning to net-zero carbon.

This year continues to prove a challenging one for global carbon markets in the short-term. However, recent price action in UK carbon allowance market, alongside investment fund support, make the market worth consideration moving into fall months.

Investors looking for opportunity and diversification beyond traditional allocations would do well to consider carbon allowances. Carbon allowance investing offers a diversified return stream for portfolios from traditional stocks and bonds with notable returns over time.

Michael McCrae is leading Kitco's coverage of the mining sector. McCrae, who has both an MBA and CMA, knows how to build digital media properties.

Global decarbonization is driving demand for carbon credits, creating a new market for investors. KraneShares Global Carbon ETF provides easy access to carbon allowance futures contracts in Europe and North America. KRBN's unique portfolio includes EUA, CCA, and RGGI futures, offering a different return profile than traditional investments.

The KraneShares European Carbon Allowance Strategy ETF (KEUA) may be a compelling offering as demand for EUAs is supposed to pick up later in the year. Demand for EUAs is expected to increase during the second half of the year as macroeconomic conditions improve, according to KraneShares.

The carbon credit market is more than ready to leave 2023 behind. That's because market experts predict 2024 could be a comeback year.

The 28th United Nations Climate Change Conference, also known as COP28, is taking place this week in Dubai and that's sure to put carbon-reduction and net-zero strategies in the spotlight. After all, the low-carbon transition is already widely viewed as a disruptive mega-theme with myriad investment implications.