SparkChange Physical Carbon EUA ETC (CO2), Europe’s first physically-backed Carbon Exchange-Traded Commodity, has listed on Deutsch Börse XETRA and Borsa Italiana.
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Elliot Waxman, CEO di SparkChange
SparkChange CO2 prevents emissions by withholding carbon allowances from polluters.
With $150 million in AUM, the ETC withholds allowances equivalent to 1.5 million metric tonnes of CO2.
The world’s first Exchange-Traded Product backed by physical EU carbon allowances (EUAs) has listed on the Deutsche Börse XETRA and Borsa Italiana stock exchanges (please see the attached press release).
SparkChange Physical Carbon EUA ETC (Ticker: CO2) offers investors a simpler way to invest in physical EU carbon allowances, also known as “permits to pollute”. Companies classified as polluters by the EU must hold and redeem these permits in line with the amount of pollution they emit. Permit holders have the right to emit one tonne of carbon dioxide (CO2).
While other funds have tracked the price of carbon allowances using futures contracts and derivatives, CO2 is the only physically-replicated carbon allowance ETC. This means that it buys and holds carbon allowances in custody, in-line with the fund’s AUM.
As a result, as more money comes into the fund, additional carbon allowances are purchased, leaving fewer for Europe’s biggest polluters to buy to cover their greenhouse gas emissions. This makes fossil fuel consumption and polluting activity more expensive, encouraging polluters to invest in more sustainable alternatives.
As well as being listed in the UK, Germany, and Italy, CO2 is also passported to the Netherlands, Finland, Luxembourg, Denmark, Norway, Sweden, Belgium, Spain, and France, making this investment opportunity widely available across Europe.
Source: ETFWorld.co.uk
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