Carbon credits are permits issued through a regulatory organization that allow a company or government to emit a certain amount of carbon dioxide or an equivalent greenhouse gas (GHG). They enable a market-oriented mechanism for mandated market participants to offset the emissions of GHGs due to their business activities, allowing them to comply with their net-zero commitments or any emissions limits imposed on them. Meets.
By having longer exposure to carbon credits, investors can enjoy benefits such as exposure to strategies that can help reduce pollution, provide a potential hedge against climate change and rising carbon costs. , and can diversify into non-correlated asset classes.
“In an increasingly crowded responsible investment landscape, CARB’s strategy differentiates it by offering unlevered index exposure to a specific asset class, which can contribute to the reduction of carbon emissions,” said Steve Hawkins, President and CEO of Horizons. included.” “Our ETF becomes, for many investors, a way for them to gain exposure to the carbon credit market without having to buy futures directly.”
The Horizons ETF’s announcement came just hours after a similar announcement from Ninepoint Partners, which said it would also add a carbon credit strategy to its Liquid Alternative Fund lineup.
The Ninepoint Carbon Credits ETF seeks to provide unitholders with long-term financial appreciation by investing primarily in global carbon emissions allowance futures.
