Setting the standard in carbon investing.
SparkChange Physical Carbon EUA ETC ("SparkChange CO2") is the world's first Exchange-Traded Commodity physically-backed by European carbon allowances.
Why SparkChange CO2
Designed to achieve impact and potential returns.
Makes physical carbon easily investable; until now, investing in physical carbon has been too operationally challenging for many investors.
First physically-backed carbon EUA product in the world offered on public exchanges (ticker: CO2.L).
Buying a physical allowance – not a derivative of an allowance – means investors prevent pollution in three ways, amplifying impact.
An asset that produces a positive impact and can be re-sold. EUAs are recognised as a “valid” way to achieve global net zero emissions targets.
This website and the information contained herein is not intended to be a source of financial advice with respect to the material presented, and/or documents contained in this website do not constitute investment advice. You should seek advice from a professional financial adviser before making any investment decisions.
Ticker: CO2
Physical vs. Synthetic Ownership of EUAs
Ensures direct environmental impact
Each SparkChange CO2 is physically-backed by an EUA*. EUAs held within the ETC structure cannot be used by polluters, ensuring direct and positive environmental impact. (In contrast, futures-based products do not affect the supply of EUAs).
Avoids performance drag
SparkChange CO2 avoids the performance drag associated with EUA futures-based products. This drag (known as “contango”) erodes the value of a futures-based investment over time, as futures tend to roll at a premium over the risk-free interest rate**. As SparkChange CO2 uses physical EUAs rather than futures, investors will not suffer from this effect.
*Adjusted for accumulated management fee since launch
**Source: EEX settlement prices as 01Aug2023: Dec23 futures = €85.10, Dec24 futures = €89.46, or circa 5.1% contango for the year; as at 01Aug2024: Dec24 futures = €71.18, Dec25 futures €73.73, or circa 3.5% contango for the year.
Stops carbon emissions
This works in three ways: 1) While SparkChange C02 holds physical EUAs, industrial firms can't use those EUAs to pollute 2) Withholding allowances triggers an EU law that results in additional allowances being cancelled in future years 3) As polluters and investors compete for a reduced supply of EUAs, prices may rise until it becomes too expensive for polluters to continue using dirty fossil fuels, incentivising the switch to cleaner energy.
More Information
Risks
Investors' capital is at risk and investors may not get back the amount originally invested and should obtain independent advice before making a decision.
The value of the ETC will be affected by movements in the price of the underlying EUAs, the value may go up as well as down.
The abandonment, termination or non-renewal upon expiration of a trading scheme may cause the price of EUAs to fall (potentially to zero).
Any decision to invest should be based on the information contained in the relevant prospectus.