KraneShares to Host “The Future of Carbon Pricing” Roundtable at the Sustainable Investment Forum North America 2024
NEW YORK, Sept. 19, 2024 (GLOBE NEWSWIRE) -- On September 24, 2024, from 10:00 am to 11:00 am, at the Ziegfeld Ballroom in New York, KraneShares, a leader in climate-focused investment strategies, in collaboration with Climate Finance Partners (CLIFI), will host an exclusive roundtable event titled The Future of Carbon Pricing. This invitation-only roundtable, part of Climate Action’s Sustainable Investment Forum North America 2024, will bring together 20 distinguished industry experts and leading institutional investors for a critical discussion on the impact of rapidly growing energy demand on global carbon prices.
As global energy consumption continues to rise, driven by emerging technologies like artificial intelligence (AI) and improving living standards in developing economies, carbon emissions are climbing at an alarming rate. Cap-and-trade programs and other emissions trading systems (ETS), which assign a price to CO2 and other greenhouse gases, have emerged as key tools to mitigate these emissions.
KraneShares, through its pioneering carbon ETFs—KRBN (Global Carbon Strategy ETF), KCCA (California Carbon Allowance Strategy ETF), and KEUA (European Union Allowance Strategy ETF)—offers investors access to these expanding carbon markets. The roundtable will focus on how these markets, and the broader carbon pricing landscape, can play a vital role in managing the world’s carbon emissions and combatting climate change.
Key Topics of Discussion:
- The growing impact of carbon pricing as nearly 25% of global emissions fall under some form of carbon regulation.
- The launch of new emissions trading systems and their potential influence on global carbon markets.
- Europe’s Carbon Border Adjustment Mechanism (CBAM) and its effect on global carbon pricing.
- The energy demand from AI and data centers and its impact on power grids and global consumption.
- Challenges and opportunities for developing nations in implementing emissions trading systems while maintaining growth.
- The potential implications of the U.S. elections on regional cap-and-trade programs, such as California’s and the Northeast’s Regional Greenhouse Gas Initiative.
Notable Participants:
The roundtable will feature Luke Oliver, Head of Climate Investments at KraneShares. Luke leads the firm’s climate solutions business and develops innovative products that provide access to carbon markets, including KraneShares’ suite of carbon ETFs like KRBN, KCCA, and KEUA. He works closely with clients to educate them on the asset class and implementation strategies.
Also joining is Eron Bloomgarden, Founding Partner of CLIFI, an expert in environmental finance and impact investing. Eron advises governments and corporations on carbon markets and teaches sustainable finance at Columbia University.
Tony Gordon, Founding Partner of AVAIO Capital, brings over 25 years of expertise in energy and environmental infrastructure investments, having built multi-billion-dollar platforms focused on energy transition and low-carbon technologies.
Jean-Philippe (JP) Brisson, Partner at Latham & Watkins, is a leading attorney in climate change law with significant experience in carbon capture, trading, and global regulatory frameworks.
These prominent experts will provide valuable insights into the future of carbon pricing, exploring its implications on investment strategies, regulatory developments, and the broader climate action agenda.
For more information on KraneShares and CLIFI’s participation at the Sustainable Investment Forum North America 2024, or to request media access, please contact: info@kraneshares.com
About KraneShares
KraneShares is a specialist investment manager focused on China, Climate, and Alternatives. KraneShares seeks to provide innovative, high-conviction, and first-to-market strategies based on the firm and its partners' deep investing knowledge. KraneShares identifies and delivers groundbreaking capital market opportunities and believes investors should have cost-effective and transparent tools for attaining exposure to various asset classes. The firm was founded in 2013 and serves institutions and financial professionals globally. The firm is a signatory of the United Nations-supported Principles for Responsible Investment (UN PRI).
Carefully consider the Funds' investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Funds' full and summary prospectus, which may be obtained by visiting: https://kraneshares.com. Read the prospectus carefully before investing.
Risk Disclosures:
Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index.
This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change. Certain content represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results; material is as of the dates noted and is subject to change without notice.
KCCA, KEUA and KRBN may invest in derivatives, which are often more volatile than other investments and may magnify KCCA, KEUA and KRBN’s gains or losses. A derivative (i.e., futures/forward contracts, swaps, and options) is a contract that derives its value from the performance of an underlying asset. The primary risk of derivatives is that changes in the asset’s market value and the derivative may not be proportionate, and some derivatives can have the potential for unlimited losses. Derivatives are also subject to liquidity and counterparty risk. KCCA, KEUA and KRBN are subject to liquidity risk, meaning that certain investments may become difficult to purchase or sell at a reasonable time and price. If a transaction for these securities is large, it may not be possible to initiate, which may cause KCCA, KEUA and KRBN to suffer losses. Counterparty risk is the risk of loss in the event that the counterparty to an agreement fails to make required payments or otherwise comply with the terms of the derivative.
The use of futures contracts is subject to special risk considerations. The primary risks associated with the use of futures contracts include: (a) an imperfect correlation between the change in market value of the reference asset and the price of the futures contract; (b) possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; (c) losses caused by unanticipated market movements, which are potentially unlimited; (d) the inability to predict correctly the direction of market prices, interest rates, currency exchange rates and other economic factors; and (e) if KCCA, KEUA and KRBN have insufficient cash, it may have to sell securities or financial instruments from its portfolio to meet daily variation margin requirements, which may lead to KCCA, KEUA and KRBN selling securities or financial instruments at a loss.
KCCA, KEUA and KRBN rely on the existence of cap and trade regimes. There is no assurance that cap and trade regimes will continue to exist, or that they will prove to be an effective method of reduction in GHG emissions. Changes in U.S. law and related regulations may impact the way KCCA, KEUA and KRBN operate, increase Fund costs and/or change the competitive landscape. New technologies may arise that may diminish or eliminate the need for cap and trade markets. Ultimately, the cost of emissions credits is determined by the cost of actually reducing emissions levels. If the price of credits becomes too high, it will be more economical for companies to develop or invest in green technologies, thereby suppressing the demand for credits. Fluctuations in currency of foreign countries may have an adverse effect to domestic currency values. KCCA, KEUA and KRBN are subject to interest rate risk, which is the chance that bonds will decline in value as interest rates rise.
KCCA, KEUA and KRBN invest through a subsidiary, and is indirectly exposed to the risks associated with the Subsidiary’s investments. Since the Subsidiary is organized under the law of the Cayman Islands and is not registered with the SEC under the Investment Company Act of 1940, as such KCCA, KEUA and KRBN will not receive all of the protections offered to shareholders of registered investment companies. KCCA, KEUA and KRBN and the Subsidiary will be considered commodity pools upon commencement of operations, and each will be subject to regulation under the Commodity Exchange Act and CFTC rules. Commodity pools are subject to additional laws, regulations and enforcement policies, which may increase compliance costs and may affect the operations and performance of KCCA, KEUA and KRBN and the Subsidiary. Futures and other contracts may have to be liquidated at disadvantageous times or prices to prevent KCCA, KEUA and KRBN from exceeding any applicable position limits established by the CFTC. The value of a commodity-linked derivative investment typically is based upon the price movements of a physical commodity and may be affected by changes in overall market movements, volatility of the Index, changes in interest rates, or factors affecting a particular industry or commodity.
Narrowly focused investments typically exhibit higher volatility. KCCA, KEUA and KRBN’s assets are expected to be concentrated in a sector, industry, market, or group of concentrations to the extent that the Underlying Index has such concentrations. The securities or futures in that concentration could react similarly to market developments. Thus, KCCA, KEUA and KRBN are subject to loss due to adverse occurrences that affect that concentration. KCCA, KEUA and KRBN are non-diversified.
ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the Fund. However, shares may be redeemed at NAV directly by certain authorized broker-dealers (Authorized Participants) in very large creation/redemption units. The returns shown do not represent the returns you would receive if you traded shares at other times. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Beginning 12/23/2020, market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer ("NBBO") as of the time the ETF calculates the current NAV per share. Prior to that date, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of 4:00 PM Eastern Time.
The KraneShares ETFs and KFA Funds ETFs are distributed by SEI Investments Distribution Company (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Funds, or any sub-advisers for the Funds.
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