The Climate Game: A Nuanced Overview of Decarbonization | ETF Trends

Governments and industries face an increasingly complex and difficult task in working to curb emissions and global warming. There is a renewed since of urgency thanks to recent findings from the Intergovernmental Panel on Climate Change. Their most recent report found that emissions must be capped by 2025 at the very latest to remain close to the Paris Agreement goals of 1.5C warming.

To give a better idea of the complexity of decisions that regulators and leaders face, the Financial Times crafted a game for Earth Day in which players attempt to reduce emissions to net-zero by 2050. Choices within the game have consequences, both positive and negative, and some pay off immediately while others are longer-term investments, reflecting on the nature of real-world choices in decarbonization.

The game takes place over three different spans of years. Players face decisions from technologies to invest in to reduce emissions, to retrofitting of houses for better efficiency, while dealing with climate impacts and crises such as ice sheet collapse from the poles. It’s a straightforward and yet nuanced look into the challenges that emissions reductions presents, while conveying the urgency.

Investing in Decarbonization with KraneShares

KraneShares offers a bevy of climate-related products that seek to capture the transition to a zero-emission world by 2050, whether through a focus on carbon emissions or on the transition of industries.

KraneShares’ carbon allowances suite of fund includes the KraneShares Global Carbon Strategy ETF (KRBN), an ETF that invests in carbon allowances futures globally from the EU, California markets, RGGI, and the U.K.; the more targeted KraneShares European Carbon Allowance Strategy ETF (KEUA); and the KraneShares California Carbon Allowance Strategy ETF (KCCA).

For investors seeking to capture the potential within industries that are transitioning to a more sustainable world, the KraneShares Electric Vehicles and Future Mobility ETF (NYSE: KARS) offers exposure to the global growth of the electric vehicle industry.

For a more unique approach to sustainability investing, the recently launched KraneShares Global Carbon Transformation ETF (KGHG) seeks to capture the true potential within the carbon transition by focusing on companies from within industries that are traditionally some of the highest emission offenders, but that are on the precipice of transitioning to renewable technologies. These companies will likely be industry leaders in reducing carbon footprints.

For more news, information, and strategy, visit the Climate Insights Channel.