This site is directed at UK Institutional/Professional Investors only. It is provided for information purposes only and should not be construed as investment advice nor a recommendation to buy/sell any products nor as an offer or solicitation to engage in any investment activity.

Setting a new
standard in carbon investing.

SparkChange is a provider of specialist carbon investment products and data, serving global institutions and their clients.

All-in-One solution

Designed to accelerate global decarbonisation.

SparkChange’s products provide investors with exposure to physical carbon allowances without the complex and costly infrastructure needed to access each market and take delivery of the carbon allowances.

Our data and analytics platform enables investors to design and implement custom strategies that help deliver their decarbonisation goals.

Our combined solution makes it easy to invest in carbon markets – more investors with access can create a bigger environmental impact.

*For illustrative purposes of data platform

Carbon allowances: The basics

Incentivising CO2
reduction.

To cap pollution in Europe, the EU Commission forces industrial firms to obtain “permits to pollute”, called carbon allowances or EUAs.

1 carbon allowance ⇒ 1 tonne of CO2

Under a Cap-and-Trade system, industrial firms that emit CO2 must obtain Carbon Emission Allowances from regulators – each allowance permits them to emit 1 tonne of CO2

Supply of allowances is reduced annually

Legislation automatically reduces the supply of allowances each year, decreasing emissions over time and increasing scarcity value of allowances

Incentivises polluters to reduce emissions

An increase in the price of allowances forces firms to switch to greener solutions and reduce their greenhouse gas emissions

1 Data from ICIS as of 31st July 2021
2 Analysts’ high-low forecasts compiled by Carbon Pulse
3 EU Commission

Why carbon is of
interest today.

Tightening emissions regulation may provide a positive catalyst for the performance of the carbon market. As of July 2021, the price of European carbon allowances was €55 per tonne of CO2.1 Recent ‘Fit for 55’ legislation has brought the annual decline of supply in line with more ambitious 2030 emission reduction goals, reducing supply even further. Analysts forecast €86 by 20302; the EU Commission forecasts €85 by 2030.3

*Past performance and forecasts are not a reliable indicator of future results

*Past performance and forecasts are not a reliable indicator of future results

1 Data from ICIS as of 31st July 2021
2 Analysts’ high-low forecasts compiled by Carbon Pulse
3 EU Commission

Ticker: CO2.L

SparkChange Physical Carbon EUA ETC.

The world's first company to launch a physically-backed carbon Exchange-Traded Commodity (ETC).

Use cases

How SparkChange can aid investment strategies.

As a standalone investment

Capture investment
returns

Since the supply of carbon allowances is diminishing, their scarcity value is increasing, creating potential for an attractive returns profile.

Improve impact

EUAs are an asset that produce a positive environmental impact and can be re-sold; Unlike offsets, which have no resale value once used and (mostly) do not reduce emissions.

Blended as part of a portfolio

Hedge risk

Given most portfolios are short the carbon price already, investors can neutralise their exposure to a rising carbon price.

Qualify for ESG
standards

Combine with equity or fixed income structures to qualify for ESG standards such as the EU Climate Transition Benchmark or Paris-Aligned Benchmark.

Investments are subject to various risks and may go down as well as up and an investor may not get back the amount originally invested. To find out more about the risks please view the Products page.

Advanced Decarbonisation Analytics

Create your carbon
management strategy.

Upload a portfolio to analyse how its carbon footprint develops over time by scope, sector and region.

Set your desired climate goal from a range of ESG benchmarks including IPCC 1.5°/2° pathways, TCFDs Paris Aligned Benchmark rules or balance your entire footprint.

Review and apply bespoke carbon alignment strategies required to achieve your net zero goal.

Learning centre

Frequently Asked Questions.

Want to know more about the carbon markets or what we do? Check out our most frequently asked questions.

If you still can’t find what you’re looking for just get in contact with us at info@sparkchange.io.

Want to know more about the carbon markets or what we do? Check out our most frequently asked questions. If you still can’t find what you’re looking for just get in contact with us at info@sparkchange.io.

Both carbon allowances and offsets have merits and important roles to play to make the world a better place. However, offset schemes are voluntary and uncapped, and therefore do not necessarily create a reduction in emissions. As a result, they are not a suitable tool for Paris-aligned strategies as they do not limit the total amount of pollution that can take place. This was recognised by the Institutional Investors Group on Climate Change (IIGCC) Net Zero Framework that excluded offsets from their taxonomy, but included carbon allowances. In addition, Allowance markets are fully regulated and allowances themselves are fungible, whereas offset schemes vary widely in quality and impact.

Yes. Under EU law, withholding EUAs triggers additional allowances being cancelled in the future. When an investor sells their EUAs this effect stops, but is not reversed, and the investor’s temporary ownership of EUAs creates permanent emissions reductions.

Carbon allowances issued in the EU ETS create lasting emission reductions. Therefore, holding such allowances can be used to compensate financed emissions from other holdings in the portfolio.

One more thing...

Easily neutralise your company’s carbon footprint.

Don’t just offset your company’s carbon footprint, neutralise it. Most offsets do not prevent pollution, they compensate for it. Isn’t it time to do more? If you really want to make a difference and take responsibility for your company’s carbon footprint, you have to go one step further and reduce CO2 emissions somewhere.

Insights & News

SparkChange launches world-first physical carbon ETC

First ever Exchange-Traded Commodity physically-backed with carbon allowances launches today “SparkChange CO2” prevents carbon…

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COP26 Preview: More countries and private markets must step up and enable action

The long-delayed 2021 United Nations Climate Change Conference, also known as COP26, begins in just…

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The Batman and Robin of Decarbonisation: Carbon Allowances and Carbon Offsets

Our Head of Research, Jan Ahrens, explains the differences between carbon offsets and carbon…

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European Carbon Allowances: Summary of Market Characteristics and ICIS Price Forecasts

Understand the latest market characteristics and EUA price developments: A liquid alternative asset class…

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Leaked information on the “Fit for 55” reform: What does it mean for European carbon allowances?

Executive Summary Later this week the European Commission will issue its formal proposal to…

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The Rise of Impact investing: SparkChange’s role in boosting climate ambition

A summary of the mechanisms that can help drive scarcity value within the EU…

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European Carbon Allowances at Record Levels: time to drive more abatement

The cost of emitting carbon dioxide in Europe is at near-record levels after a…

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