Description

The SparkChange Physical Carbon EUA ETC (CO2) enables investors to gain direct exposure to physical European Union Allowances (EUAs). Each individual EUA unit grants the holder permission to release one metric tonne of carbon dioxide into the atmosphere. Investing in CO2 effectively takes these carbon permits out of circulation, thereby preventing polluters from using them and consequently reducing emissions. As demand from both industries that generate pollution and investors seeking exposure to carbon markets intensifies for a limited supply of EUAs, their price is likely to escalate. This rising cost can eventually render continued reliance on high-emission fossil fuels economically unviable for polluters. A significant benefit of this ETC is its avoidance of the performance drag typically associated with financial products based on EUA futures. The carbon EUA ETC is completely backed by physical EUAs and its value directly tracks their market price, prior to any fees.