SparkChange physical carbon ETC withholds 1 million tonnes of CO2 permits in first four weeks of trading

  • $109m already invested in the ETC means 1 million tonnes of CO2 permits now withheld from polluters [1]

30th November 2021 London

The world’s first Exchange-Traded Commodity (ETC) backed by physical EU carbon Allowances (EUAs) SparkChange Physical Carbon EUA ETC (Ticker: CO2) has $109 million already invested in the product. This means over 1 million tonnes of CO2 permits are being withheld from polluters in Europe creating positive environmental impact. [2]

The Physical Carbon ETC which listed on London Stock Exchange on November 4th 2021 provides investors with an easier way to invest in physical EU carbon allowances or “permits to pollute” that the EU Commission forces industrial emitters to obtain to cap the levels of pollution in Europe.

Elliot Waxman CEO of SparkChange said “Investors urgently need a tangible way to fight climate change and to achieve their environmental goals. When investors buy thePhysical Carbon ETC they are withholding permits from the big polluters. In just two weeks over a million tonnes of CO2 permits are being withheld which can lead to the permanent prevention of emissions from ever entering the earth’s atmosphere. It’s an excellent example of investor activism.

The EU Commission reduces the supply of EUAs year on year to aid Europe’s transition to net zero. As polluters and investors compete for this dwindling supply of EUAs the increased scarcity is likely to support upward price pressure. The rising price of EUAs incentivises the polluters to switch away from using dirty fossil fuels to cleaner energy. Furthermore under EU law withholding EUAs for 12 months triggers additional EUAs being cancelled in future years amplifying the overall effect and locking up more allowances.

ThePhysical Carbon ETC was created in partnership with HANetf Europe’s leading white label ETP provider.

Hector McNeil co-CEO of HANetf said “We are seeing real enthusiasm from institutional investors about this new product as it allows investors to meet their environmental goals and decarbonise their portfolios.”

Erik-Jan Nieboer Head of Commodities at Flow Traders said: We are proud to work with SparkChange and act as a market maker for the world’s first Exchange-Traded Commodity physically-backed with carbon allowances. This is a meaningful step towards investors having greater exposure to products that have a positive impact on the environment and contribute to fighting climate change. At Flow Traders we continue to invest in our trading capabilities to ensure that sustainable investment products such as SparkChange CO2 can be traded easily and efficiently.

When you invest in ETCs your capital is at risk.

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