Carbon Allowances

KRBN Summit & NYSE Bell Ringing Highlight Reel

On September 21st, 2020, Krane Funds Advisors, LLC, Climate Finance Partners, IHS Markit, and the New York Stock Exchange hosted Market Solutions to the Climate Crisis: A Global Price for Carbon Emissions, a Virtual Summit and NYSE Bell Ringing in honor of the KFA Global Carbon ETF.

68th Secretary of State of the United States, John Kerry, delivered the keynote speech and Nobel Prize-winning Economist, Robert Engle presented on taking a financial approach to climate change risk.

As Secretary Kerry explained during his keynote address, the consequences of the climate crisis can already be felt from wildfires in California to global food shortages. Carbon pricing is an important tool to encourage emissions reductions and to meet guidelines identified by scientists to help stop climate change.

Eron Bloomgarden, Sustainable Finance Lecturer at Columbia University’s Earth Institute and Founder of Climate Finance Partners, the sub-advisor to the KRBN ETF, presented on how a price for carbon emissions can be set and the mechanics of cap and trade. He described that transformative change is needed to maintain a safe climate and that we cannot get there without the participation of the financial sector.

An expert investor panel formed by Howard Fischer, Founder and CEO of Basso Capital Management, David Thorne, Founder and Director of Advisor Investments, and Thien Le, a Vice President and Financial Advisor at Morgan Stanley, provided perspective about allocating to the carbon allowance market. According to KRBN’s index provider, IHS Markit, as of September 30, 2020, the global price of carbon was $20.18 per ton of CO2. Tightening emissions regulations may provide a positive catalyst for the performance of the global carbon allowance market. As Howard Fischer explained during the investor panel “…the price of carbon will creep up (I heard somebody say probably to $70 or $80), I think it’s probably worth a lot more.”

      1. Robert Engle, A Financial Approach to Climate Change Risk, March 2019

The links and the views of the third parties do not necessarily reflect the views of KFA, its management, employees, officers, and affiliated entities. All opinions, evaluations, descriptions, and statements do not purport to be complete and are subject to change. KFA makes no representation as to the adequacy of information and should not be construed as an endorsement by KFA, its affiliated entities, management, officers, employees, and agents.

The KRBN ETF is distributed by SEI Investments Distribution Company (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Fund, Climate Finance Partners, the Co-Advisor for the Fund, IHS Markit, The New York Stock Exchange, Morgan Stanley, Advisor Investments, or Basso Capital Management.