How to invest in carbon emission allowances using ETFs/ETCs

How can I invest in carbon emission allowances?

With ETFs you not only have the opportunity to invest in equity or bonds. You can also participate in the price development of commodities like carbon emission allowances. However, there are a few things you should know: commodity ETFs always track a whole basket of different commodities. There are no carbon emission allowances ETFs that are domiciled within the European Union. This is due to the regulatory framework which is defined by the UCITS directive. According to these guidelines, an index (and thus also corresponding ETFs) must always provide a minimum degree of diversification and may not consist of only one component. Consequently, regulations in the EU do not allow the launch of a carbon emission allowances ETF.

If you want to invest in a single commodity like carbon emission allowances, you can do so via Exchange Traded Commodities (ETC). Please have a look at our article "What is an ETC?" for a detailed explanation of the similarities and differences between ETFs and ETCs.
 

How carbon credit ETCs work

ETCs can replicate the performance of carbon emission allowances in different ways. First, an ETC may track the spot price of carbon emission allowances and be physically backed. If this is the case, physical carbon emission allowances are used as collateral for the corresponding ETC. Second, ETCs can track the performance of carbon emission allowances using futures contracts. These ETCs are also backed with collateral, which is usually checked on a daily basis. However, the collateral in such a case is not in the form of physical carbon emission allowances, but in the form of cash investments or securities with top credit standing.

In this investment guide you will find all ETCs that allow you to invest in carbon emission allowances.
 

Pour la sélection d’un carbon credit ETFs/ETCs, outre la méthodologie de l’indice et les performances, d’autres facteurs jouent un rôle important lors de la décision. Pour faciliter la comparaison, vous trouverez une liste des carbon emission allowances avec les indications relatives à la taille, aux frais, à l’utilisation des revenus, au domicile du fonds et à la méthode de réplication classée en fonction de la taille des fonds.

Comparaison détaillée de tous les Carbon credit ETFs/ETCs
Comparaison graphique de tous les Carbon credit ETFs/ETCs

Source : justETF.com ; situation au : 26/04/2024

Comparaison des performances des carbon credit ETFs/ETCs

Le tableau suivant compare les performances de tous les carbon credit ETFs/ETCs. Toutes les indications relatives aux performances sont données à la fin du mois et comprennent les distributions. Outre les performances à une date de référence, l’évolution dans le temps est décisive pour la comparaison des ETFs. Pour cela, servez-vous aussi de nos comparaisons graphiques.

• Par périodes
• Par années

Source : justETF.com ; situation au : 31/03/2024 ; indications en EUR, distributions comprises