The CEO of Exxon Mobile, Darren Woods, wants a higher carbon tax that would benefit his company and others like it that are working to create carbon capture technologies, reported CNBC.
Woods sees direct air capture technologies as the ultimate solution to emissions because of their ability to pull carbon from the atmosphere, and Exxon estimates that the market for this kind of technological solution will be worth around $4 trillion by 2050.
The existing price for carbon dioxide capture is listed in the IRS tax code as is currently maxed out at $50 per ton that is captured and stored, while Exxon would like to see that number north of $100.
“If you can overcome some of those technology hurdles, get your cost down, you’ve got a technology then that can address this [speaking of climate change] in a very cost-efficient way,” Woods said in an interview with CNBC.
The KraneShares Global Carbon Offset Strategy ETF (KSET) is the first U.S.-listed ETF offering investors exposure to the voluntary carbon markets and is structured to offer global coverage of voluntary carbon markets by tracking carbon offset futures contracts comprised of nature-based global emissions offsets (N-GEOs) as well as global emissions offsets (GEOs) that trade via CME Group.
Projects that can be found within voluntary carbon markets include traditional approaches to carbon capture through reforestation and the like, as well as more recent, technology-driven ones such as direct air capture that would benefit from this higher carbon tax.
N-GEOs adhere to the Verified Carbon Standard, which set the requirements for projects within Agriculture, Forestry, and Other Land Use (AFOLU). The N-GEOs also are certified by the Verra Registry’s Climate Community and Biodiversity Standard, which selects projects that work towards climate change goals, support local communities and smallholders, and work to protect and conserve biodiversity. The GEOs meet Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) from VCS, the American Carbon Registry, or the Climate Action Reserve.
KSET is structured so that as new markets scale to size, they will be included within the fund, and carries an expense ratio of 0.79%.
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