European Carbon Allowances: Putting pressure on polluters through an ETC

Presented by

Phil Beattie, Head of Strategic Partnerships at SparkChange, Tom Bailey, Head of Research at HANetf

About this talk

To cap pollution in Europe, the EU Commission forces industrial companies to obtain “permits to pollute”, called carbon allowances or EUAs. Each EUA is a permit to pollute 1 tonne of carbon dioxide. Under EU law, each year the supply of carbon allowances shrinks, reducing the amount of pollution and aiding Europe’s transition to Net Zero. Since the supply of carbon allowances is diminishing, their scarcity value is increasing. This creates potential for attractive returns among investors. Buying a physical allowance means investors prevent pollution in 3 ways. While investors hold physical allowances, polluters cannot use them. Under EU law, withholding an allowance triggers additional allowances being cancelled in the future, further reducing supply. As polluters and investors compete for a reduced supply of EUAs, prices rise until dirty fossil fuels are too expensive for industrial firms to continue using. This forces polluters to find cheaper, greener alternatives. But how can investors gain access to the carbon market? We’ll be joined by Phil Beattie, Head of Strategic Partnerships at SparkChange, to discuss the history of the carbon market and the different ways EUAs prevent pollution. We will also be discussing: - The end of the EU ETS compliance cycle - The regulatory environment - EUA market outlook - Investing in a physical carbon ETC For professional investors only. Capital at risk.
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HANetf is an independent ETF provider founded by two of Europe’s leading ETF pioneers, Hector McNeil and Nik Bienkowski, to challenge conventional approaches to ETF product development and create distinctive opportunities for investors. HANetf’s unique UCITS ETF range is the result of close collaboration with leading asset managers that leveraged HANetf’s full-service white-label ETF platform to simplify the set-up, launch and distribution of their investment ideas.