This site is directed at 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 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.

Contact Sales

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.

Contact Sales

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.

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).

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.

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.

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.

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, at the expense of the investor, and has recently been 50-130bp a year.** Historically, it has been much higher. 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 1st Sept 2020: Dec20 futures = €27.75, Dec21 futures = €28.11, or circa 1.30% contango for the year; as at 1st Sept 2021: Dec21 futures = €60.12, Dec22 futures €60.42, or circa 0.50% 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.

Download Guide

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.

Product Specifications

Key Facts Overview.

  • Inception Date 18/10/2021
  • Asset Class Emissions
  • Base Currency EUR
  • TER 89 bps
  • Value of EUA Holding
  • Underlying Exposure Carbon EUA
  • Issuer AUM
  • ISIN XS2353177293
  • WPK A3GSS6

Key Documents.

Interested to learn more?

Would you like to see the effect that carbon allowances can have on your portfolio? Contact us to arrange a CarbonImpact demo.

Book DemoAlready a customer? Sign in
Case study
Case study

Solactive's Zero Carbon Index, powered by SparkChange

Download PDF
Learn about CarbonImpact
Learn about CarbonImpact

A data tool to mitigate your portfolio’s carbon exposure

More Details