Description

The SparkChange Physical Carbon EUA ETC (CO2) offers investors direct access to physical European Union Allowances (EUAs). Each EUA grants the holder the right to emit one tonne of carbon dioxide. By investing in this ETC, capital is directed towards acquiring and holding these allowances, effectively removing them from the market and reducing the supply available to polluting industries. This mechanism aims to increase EUA prices as both polluters and investors compete for a scarcer resource, eventually making it economically unviable for businesses to continue using high-carbon fossil fuels. A key advantage of this ETC is its physical backing, which avoids the performance drag often associated with futures-based carbon products. It is 100% backed by physical EUAs and is designed to track their price performance, excluding fees.