KraneShares has introduced the KraneShares Global Carbon Strategy ETC on the London Stock Exchange, broadening access to its flagship carbon credit investment product.

Xiaolin Chen, Head of International at KraneShares.
The ETC is now available for trading in US dollars (Ticker: KRBN LN) and British pounds (Ticker: KRBP LN). This launch follows the ETC’s successful listings on Deutsche Börse Xetra (KRBN GY) and Borsa Italiana (KRBN IM) in euros.
The ETC provides exposure to global cap-and-trade carbon allowance markets, a key mechanism for managing greenhouse gas emissions.
Under cap-and-trade systems, regulators establish a limit, or cap, on emissions for regulated entities such as manufacturers or energy producers. These entities must hold allowances corresponding to their emissions, with allowances either issued or sold by regulators.
Entities exceeding their cap must purchase additional allowances, creating a market-driven approach to pollution control. Over time, caps are reduced, encouraging the transition to cleaner technologies and renewable energy.
The ETC follows the same strategy as the $200 million US-listed KraneShares Global Carbon Strategy ETF (KRBN US), the first, largest, and most liquid carbon allowance ETF globally, by tracking the S&P Global Carbon Credit Index.
The index covers major cap-and-trade programs including European Union Allowances, California Carbon Allowances, United Kingdom Allowances, Washington State Carbon Allowances, and the Regional Greenhouse Gas Initiative, which governs the Northeast US power market. In 2023, these carbon markets reported a combined trading volume of more than $750 billion, highlighting their significant role in the global energy transition.
For investors, carbon credits offer an opportunity to gain exposure to the growing energy transition economy while enhancing portfolio diversification. Historically, carbon credits have shown low correlations to traditional assets such as equities, exhibiting a 0.3 correlation to US large caps, and fixed income.
Luke Oliver, Head of Climate Investments at KraneShares, emphasized the company’s leadership and the ETC’s potential benefits, stating: “KraneShares is a global leader in carbon market ETFs. We are excited to expand access to this critical market through our new KRBN ETC listing on the London Stock Exchange. We believe carbon allowances provide a compelling investment opportunity because they offer low correlations and a structural upside that does not exist in other traditional commodity allocations.”
Xiaolin Chen, Head of International at KraneShares, underscored the broader implications of investing in carbon markets, commenting: “We believe carbon allowances can play an important role in every investor’s portfolio. They are structurally designed for long-term price appreciation as part of their core application of decreasing emissions. Besides the potential portfolio benefits, allocating to carbon supports price discovery and liquidity in the markets, which we believe promotes sustainability and true environmental impact.”
The ETC is priced with an expense ratio of 0.78%.