KraneShares European Carbon Allowance Strategy ETF Price & Performance (KEUA)

The EU carbon allowance market is poised for a rebound in 2025, driven by the anticipated finalization of the 2040 climate target and the Clean Industry Deal. These reforms aim to tighten market supply and stimulate prices, positioning carbon allowances as a key tool for achieving decarbonization goals.12

The California carbon market is set for significant changes as policymakers finalize reforms to reduce carbon allowance supply. Prices are expected to rise from current lows, with projections of hitting $90 by 2030. The market’s tightening trajectory and policy clarity are seen as catalysts for future growth.34

Investors are increasingly turning to carbon ETFs like KRBN and KEUA to gain exposure to global carbon markets. These funds provide access to EU and California carbon allowances, offering diversification and potential growth as regulatory measures tighten and carbon pricing strengthens globally.23