CO2

SparkChange Physical Carbon EUA ETC

"SparkChange CO2 prevents emissions by withholding carbon allowances from polluters. This means investors can achieve both environmental impact and potential returns - together at the same time."  Elliot Waxman, CEO of SparkChange

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Key Documents
Factsheet
As of 29/11/2021

Overview

SparkChange Physical Carbon EUA ETC (Ticker: CO2) is designed to offer investors a means of accessing the properties of physical European Union carbon Allowances ("EUAs"). SparkChange CO2 is backed by physical EUAs and therefore tracks the price of EUAs (excluding fees). 

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Why Invest in a Carbon ETC?

EUAs are increasing in scarcity value:

An EUA is a permit to pollute 1 tonne of CO2 (Source: European Commission). The EU Commission automatically issues fewer EUAs each year in order to decrease CO2 emissions over time, creating the potential for upward price pressure and driving scarcity value. 


100% physically-backed by EUAs:

Each SparkChange CO2 is physically-backed by one EUA which will be adjusted for accumulated management fees since launch. 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. SparkChange CO2 also 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. As CO2 uses physical EUAs rather than futures, investors will not suffer from this effect.


Prevents carbon emissions:

This works in three ways: 1) While SparkChange CO2 holds physical EUAs, industrial firms can’t use those EUAs to pollute. 2) Under EU law, holding EUAs for twelve months or more triggers additional permits being cancelled in future years. 3) As polluters and investors compete for a reduced supply of EUAs, prices may rise until too expensive for polluters to continue using dirty fossil fuels, incentivising the switch to cleaner energy. 

Risks

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).  

Investors' capital is at risk and investors may not get back the amount originally invested and should obtain independent advice before making a decision. Any decision to invest should be based on the information contained in the relevant prospectus.

As of 29/11/2021

Listings & Codes

Exchange Ticker RIC SEDOL ISIN Valoren WKN CCY Listing Date
LSE CO2 LN CO2.L BNLYQ70 XS2353177293 - - EUR 04/11/2021
LSE CO2P LN CO2P.L BNLYQC5 XS2353177293 - - GBP 04/11/2021
LSE CO2U LN CO2U.L BNLYQH0 XS2353177293 - - USD 04/11/2021

Registrations

Fund Overview
TickerCO2
Asset ClassEmissions
Base CurrencyEUR
Inception Date18/10/2021
TER89 bps
Net Asset ValuesAs of 29/11/2021
Price per CO2*€74.13
Carbon Entitlement Per Security0.999387870
Price Per EUA**€74.18
Total EUA Holdings (in EUA)1325000.000
Value of EUA Holding (in EUR)€105,641,805.00
Shares Outstanding1,425,000
Issuer AUM$457,358,924

* Based on Carbon Entitlement per Security multiplied by Price of EUA
** Source: Bloomberg, EUA Spot price

Structure
Replication MethodPhysical
Legal FormDebt Security
Financial End Year31/03
DomicileIreland
Legal StructureETC
Legal And Tax Information
UCITS EligiblePlease contact HANetf
UCITS CompliantNo
ISA EligibleYes
SIPP EligibleYes
UK Fund Reporting StatusSeeking
Key Service Providers
TrusteeThe Law Debenture Trust Corporation plc
IssuerHANetf ETC Securities plc


CO2 Performance 1M 3M 6M YTD 12M Since Inception

Insights

InsightsNovember 2021

Video | SparkChange and HANetf see good uptake in the first ETP backed by physical EU Carbon Allowances
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InsightsNovember 2021

An investor’s guide to Physical Carbon Allowances (EUAs)
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InsightsNovember 2021

Investment Case for Physical Carbon EUAs
Read More

Press Releases

PressNovember 2021

SparkChange and HANetf to launch the world’s first ETP backed by physical EU Carbon Allowances (EUAs)
Read More

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Related Content

Listings & Codes

Exchange Ticker RIC SEDOL ISIN Valoren WKN CCY Listing Date
LSE CO2 LN CO2.L BNLYQ70 XS2353177293 - - EUR 04/11/2021
LSE CO2P LN CO2P.L BNLYQC5 XS2353177293 - - GBP 04/11/2021
LSE CO2U LN CO2U.L BNLYQH0 XS2353177293 - - USD 04/11/2021

How to Buy CO2

HANetf funds are available to buy through self-directed platforms and brokers, and intermediary platforms across Europe listed in the link below. If you would like more information on how to trade with APs/market makers, please contact our Capital Markets Team at [email protected]

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CO2 ESG Rating

Although SFDR is not applicable to ETCs, it should be noted that EUAs are recognised as a ‘valid’ way to achieve net zero targets by the Institutional Investors Group on Climate Change (IIGCC)and Paris Aligned Investors Initiative (PAII).

CO2 Benchmark

The benchmark is physical European Union carbon emissions allowances which each allow the holder (if so desired) to emit 1 tonne of carbon dioxide equivalent or other greenhouse gas in accordance with the rules of the European Union Emissions Trading System.

About SparkChange

SparkChange is a provider of specialist carbon investment products and data, enabling investors to achieve both positive environmental impact and financial returns.

The company was established by experts in environmental products and scalable technologies to set a new standard in carbon investing.

SparkChange is on a mission to revolutionize access to physical carbon. More investors with access means a bigger impact on the environment. That doesn’t just change a world of investing. It can change the future of our planet.

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