Asset manager Krane Funds Advisors (KraneShares) announced today it is expanding its carbon market offering with the launch two new funds, KraneShares European Carbon Allowance ETF (KEUA), and the KraneShares California Carbon Allowance ETF (KCCA).

The two new funds join KraneShares’ existing carbon market suite alongside the KraneShares Global Carbon ETF (KRBN), which was listed last year on NYSE and offers investors with exposure to carbon cap and trade programs. According to the asset manager, the fund has accumulated over $900 million in AUM and returned 105.45% since its inception.

 Luke Oliver, Managing Director and Head of Strategy at KraneShares, said:

“Through the phenomenal success of KRBN, we learned that many of our clients also want targeted exposure to the underlying markets. KEUA and KCCA provide access to the component carbon allowance markets at various stages of their growth cycle. With these new ETFs, investors can take a customizable precision-approach to invest in carbon markets.”

KEUA provides exposure to the European Union Allowances (EUA) cap-and-trade program, the world’s oldest and most liquid carbon allowance market. The program aims to reduce emissions by at least 55% of 1990 levels by 2030 and reach climate neutrality by 2050.

KCCA provides exposure to the California Carbon Allowances (CCA) cap-and-trade program and it covers approximately 80% of the state’s emissions. The program plans to achieve a 40% reduction from 1990 GHG levels and reach carbon neutrality by 2045.

Jonathan Krane, CEO of KraneShares, said:

“We believe investors are attracted to the carbon allowance investment opportunity because they see its low-correlated growth potential, which can also have a positive impact on the planet. Our Europe and California carbon ETFs join KRBN in expanding KraneShares’ position as a leader in carbon market investment solutions.” 

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