KSET ETF

Carbon offsets have long garnered criticism for their lack of regulation and any number of bad actors trying to cash in on decarbonization efforts. Increasing regulations from several significant entities, including most recently the CTFC, creates the potential for stronger carbon offset market fundamentals.

A carbon offset ETF is handily outpacing its commodity ETF peers year to date through January 30. The KraneShares Global Carbon Offset Strategy ETF (KSET) impressively rallied 26.6% in the period between January 1 and January 30, 2024.

Despite conjecture to the contrary, broad swaths of advisors and retail investors remain enthusiastic about environmental, social, and governance (ESG) investing. And more are taking closer looks at climate-focused and sustainability-driven strategies.

Climate change-driven investing is about much more than rising temperatures. It encompasses corporate and governmental efforts to reduce carbon output, industry-level implications of those efforts, and the long-term economic benefits of applying more scrutiny to climate initiatives.

In recent years, many well-known corporations have unveiled ambitious carbon-reduction and net-zero goals. That's put newfound emphasis on carbon-related investing, including carbon offsets – an asset class that's increasingly accessible to ordinary investors thanks to exchange traded funds such as the KraneShares Global Carbon Offset Strategy ETF (KSET).

A carbon offset ETF handily outpaced its commodity ETF peers last week. The KraneShares Global Carbon Offset Strategy ETF (KSET) impressively rallied 16.6% in the one-week period trailing September 1.

The new framework to better define high-quality carbon credits for market participants and buyers was finalized July 27. The hope is that it will instill confidence for investors and bring more liquidity to the market.

The Voluntary Carbon Market Integrity Initiative announced new guidelines aimed at ensuring carbon offset integrity and use. The creation of the guidelines could bring much needed investor confidence to the market which KraneShares Global Carbon Offset Strategy ETF (KSET) benefits from.

The Integrity Council for the Voluntary Carbon Market released a set of guidelines last month that could bring cohesiveness and clearer definition to the often-fragmented, nascent carbon offset market.