EU Carbon Credits – A Massive ESG Opportunity

Published on: March 22nd, 2021

The EU has a huge mandate to aggressively reduce carbon emissions by around 60% by 2030. This has led to a BIG opportunity…

Comments

  • BT
    Billy T.
    9 April 2021 @ 05:08
    When you plot the EUA future with the S&P, looks pretty correlated to me.
  • AP
    Aneil P.
    1 April 2021 @ 00:34
    What ETF or instrument do you buy to shadow this opportunity?
  • NI
    Nymann I.
    22 March 2021 @ 19:48
    Isn’t there a UK ETF or tracker - I think I’ve seen one?
    • RK
      Roger K.
      28 March 2021 @ 09:08
      For UK/ EU based retails traders cannot buy the US ETFs either. Ridiculous (EU related shite)...
  • HS
    Hirun S.
    24 March 2021 @ 01:32
    What does it mean to be a 40 vol instrument?
    • HM
      Harry M. | Real Vision
      24 March 2021 @ 18:03
      The instrument has a 40% annualized vol.
    • SC
      Sanjeev C.
      27 March 2021 @ 01:28
      vol as in volatility, not volume (I've made that mistake before)
  • JF
    Jonathan F.
    24 March 2021 @ 17:29
    My broker thinks I'm an official idiot now. Trying to figure out this trade is like buying your 1st bitcoin. There is margin in the mysterious though!
    • SC
      Sanjeev C.
      27 March 2021 @ 01:24
      :)
  • MF
    MICHAEL F.
    22 March 2021 @ 14:49
    What is the name of the MO Futures contract?
    • RP
      Raoul P. | Founder
      22 March 2021 @ 14:55
      EU ETS or EU Carbon
    • MF
      MICHAEL F.
      22 March 2021 @ 15:10
      Thank you. Just to make sure I am looking at the right one, trading around $42.50 for Dec21?
    • HM
      Harry M. | Real Vision
      22 March 2021 @ 15:19
      On Interactive Brokers if you use ECF you should find them.
    • MF
      MICHAEL F.
      22 March 2021 @ 15:24
      Got it. Thank you both very much.
    • MC
      Mathieu C.
      22 March 2021 @ 15:59
      ECF
    • SP
      Stephen P.
      22 March 2021 @ 19:34
      I found them on IB using ICE ECX EUA - a range of futures. I'm trying to get my permissions to buy them.
    • BT
      Billy T.
      23 March 2021 @ 00:19
      What does the infinity symbol mean in the ECF continuous Dec contract? Does it imply no expiration date?
    • BM
      Brent M.
      25 March 2021 @ 23:25
      Hi Raoul and Harry, I'm going to go forward with this one. Love it. Question - I'm new to IB and I'm new to Futures. Should I definitely go with the Dec 2021 contract? Why not the March 2022 or later dated Futures? And, sorry, noob question, can these be cashed out prior to expiry? Thank you!
  • AM
    Aengus M.
    22 March 2021 @ 15:31
    page 5: "........ten lower-income US member states......." EU?
    • MM
      Morten M.
      25 March 2021 @ 20:12
      Must be
  • DM
    Dez M.
    22 March 2021 @ 21:16
    ECF futures contract on Interactive Broker require to put down 100% margin, which costs about 50K USD. Is that what you guys are getting? It seems easier to hold the ETF instead. If there's anybody else who can find a better alternative that requires lower margin please let me know.
    • BF
      Ben F.
      23 March 2021 @ 12:30
      getting same
    • IO
      Igor O.
      25 March 2021 @ 08:19
      Getting same. And not allowed to trade etf as a retail.
    • DS
      David S.
      25 March 2021 @ 14:37
      Interactive Brokers are trash. Their margin requirement is 100% of the notional contract value
    • SJ
      Srinivasa J.
      25 March 2021 @ 17:46
      I may be wrong, on IB I found ECF (Apr 26'21) $ 39.66 on 3/25/21 and found other months as well till Dec 2027. What am I missing?
  • BT
    Billy T.
    23 March 2021 @ 00:05
    Are we going to get a RV bump on the EUA futures tmrw?
    • HM
      Harry M. | Real Vision
      24 March 2021 @ 18:02
      Im curious too!
  • HP
    Henry P.
    24 March 2021 @ 16:37
    Interesting note on the KRBN factset: "Also worth noting, the Chairman of the fund’s sub-advisor is former US Secretary of State, John Kerry."
  • CH
    Christopher H.
    24 March 2021 @ 13:31
    Is there an option for EU-investors to participate in this trade, besides the futures?
  • FK
    Firoze K.
    22 March 2021 @ 15:55
    Has anyone managed to find the futures contract on Saxo?
    • JF
      Jonas F.
      22 March 2021 @ 16:03
      I can only find KRBN on Saxo.... anybody who has found a way on Saxo?
    • OD
      Oliver D.
      22 March 2021 @ 16:09
      I found the ECX EUA (CFIZ2) contract on Saxo. Not sure if this is the right one to trade...
    • JF
      Jonas F.
      23 March 2021 @ 15:32
      Did any of you find a way to trade on Saxo? I cant find anything... any help?
    • DF
      David F.
      23 March 2021 @ 16:15
      Yes, CFIZ2 is the Carbon Credit Futures, I believe
    • JW
      J W.
      24 March 2021 @ 13:17
      As far as I could tell on Saxo you can buy two futures contracts: the EXC EUA Dec 2021 futures contract but note that for 1 contract it has a 6.5K USD margin impact. And you can buy the Dec 2022 expiry which has a 6,1K USD margin impact. There is also a Dec 21-22 spread which has double the margin impact. It seems far easier to buy the ETF's. Saxo does not list the ETF's but for example, Swissquote does.
  • RK
    Ralf K.
    24 March 2021 @ 10:46
    GRN (an ETN) tracks the future much better than KRBN, since it contains almost only the European future and not also the Californian one.
  • MG
    Marc G.
    23 March 2021 @ 16:20
    Did anyone find the options Raoul mentioned? Can't seem to find them on the index
    • MG
      Marc G.
      23 March 2021 @ 16:20
      on the futures I meant
  • NI
    Nymann I.
    22 March 2021 @ 20:06
    Found it: Wisdom Tree’s ETFS Carbon (CARB/CARP), tracks ICE
    • BF
      Ben F.
      23 March 2021 @ 11:32
      how do you get exposure to this? I can't find it in in interactive brokers, or my UK brokerage account?
    • BF
      Ben F.
      23 March 2021 @ 11:42
      "However, the product was delisted in early June after swap counterparty Shell Trading Switzerland terminated its agreement with WisdomTree on the back of significant energy market volatility and sharp falls in the price of carbon." https://www.etfstrategy.com/kfa-funds-launches-first-us-listed-carbon-emission-allowances-etf-48595/
  • WM
    Will M.
    22 March 2021 @ 18:46
    My apologies, I rarely use my IB account. When I try to find ECF on the IB trade it comes up with a list of non related funds/companies. How can I navigate to the correct instrument in IB?
    • LH
      Luis H.
      23 March 2021 @ 00:58
      ICE ECX EUA futures ECF IPE
  • RS
    Rodrigo S.
    22 March 2021 @ 23:50
    There is a crypto token called moss carbon credit.
  • AB
    Avik B.
    22 March 2021 @ 23:08
    Has anyone found the options contracts on IB? I see the futures - ECF, but don’t see options.
  • JS
    Jonathan S.
    22 March 2021 @ 15:36
    Hi Raoul, What brokerage service are you using as it does not seem to be on Interactive brokers.
    • JS
      Jonathan S.
      22 March 2021 @ 15:38
      Same as JG. Sorry.
  • JF
    Jonas F.
    22 March 2021 @ 15:37
    I subscribed to the pro-membership yesterday (primarily) as I hoped you would release a trade-proposal on the EU carbon scheme. So I am really happy to read it already now. Thanks. Now, let me explain.... I only recently started crypto, macro and Real Vision but I got 20 years experience with the EU (Commission, Parliament and Council), including some experience with the energy, climate and 'green' projects. I also know a good part of the politicians and bureaucrats involved. On that basis I can say that there is 100 % political and institutional backing for the carbon initiative these days in Brussels. Its is in many ways THE political and economic flagship and a must-succeed dossier (also because EU is messing up on the economy and covid). All the 3 institutions and nearly all EU Member States strongly supports it. I am less familiar with the investing aspects but from a political and institutional aspect this EU carbon initiative is gonna get ALL the support needed. Few issues get higher priority here in Brussels....
  • JG
    J G.
    22 March 2021 @ 15:26
    Coulnd't find these futures in Interactive Brokers. Would anyone be able to point me towards the ticker there?
    • JG
      J G.
      22 March 2021 @ 15:28
      Sorry, the comments below refreshed while i was typing, please ignore!
  • WB
    Wes B.
    22 March 2021 @ 15:24
    Love it. Started buying KRBN last week. Not 100% confident this is most liquid contract but the futures contract I bought using IBKR was symbol ECF Dec contract.

Mark Yusko

Morgan Creek Capital Management, Co- Founder, CEO, & CIO

Mark Yusko is the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management. He is also the Managing Partner of Morgan Creek Digital Assets.

Morgan Creek Capital Management was founded in 2004 and currently manages close to $2 billion in discretionary and non-discretionary assets. Prior to founding Morgan Creek, Mr. Yusko was CIO and Founder of UNC Management Company (UNCMC), the Endowment investment office for the University of North Carolina at Chapel Hill. Before that, he was Senior Investment Director for the University of Notre Dame Investment Office. Mr. Yusko has been at the forefront of institutional investing throughout his career. An early investor in alternative asset classes at Notre Dame, he brought the Endowment Model of investing to UNC, which contributed to significant performance gains for the Endowment. The Endowment Model is the cornerstone philosophy of Morgan Creek, as is the mandate to Invest in Innovation.

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Prior to founding SkyBridge in 2005, Scaramucci co-founded investment partnership Oscar Capital Management, which was sold to Neuberger Berman, LLC in 2001. Earlier, he was a vice president in Private Wealth Management at Goldman Sachs & Co. In 2016, Scaramucci was ranked #85 in Worth Magazine’sPower 100: The 100 Most Powerful People in Global Finance. In 2011, he received Ernst & Young’s “Entrepreneur of the Year –New York” Award in the Financial Services category. Anthony is amember of the Council on Foreign Relations (CFR), vice chair of the Kennedy Center Corporate Fund Board, a board member of both The Brain Tumor Foundation and Business Executives for National Security (BENS), and a Trustee of the United States Olympic & Paralympic Foundation. He was a member of the New York City Financial Services Advisory Committee from 2007 to 2012. In November 2016, he was named to President-Elect Trump’s 16-person Presidential Transition Team Executive Committee. In June 2017, he wasnamed the Chief Strategy Officer of the EXIM Bank. He served as the White House Communications Director for a period in July 2017. Scaramucci, a native of Long Island, New York, holds a Bachelor of Arts degree in Economics from Tufts University and a Juris Doctor from Harvard Law School.

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Nugget's News, Founder & CEO

Alex Saunders is the founder and CEO of Nugget’s News, a digital media company focused on all things crypto. Alex has been captivated by cryptocurrency since 2012 and in 2017 he began educating globally on the benefits of cryptocurrency and how to safely acquireit. Nugget’s News has been listed as a top-20 podcast by Business Insider, ShapeShift and Lifehacker and has over 120k YouTube subscribers with 9 million total views.Alex is also heavily focused on his cryptocurrency education platform Collective Shift which currently serves over 4,500 members. provides his unique perspectives by utilising his expertise in fundamental analysis, technical analysis and market sentiment. He is working towards his mission of making it easier for everyone to understand the financial world.

James Putra

TradeStation Crypto, Inc., Sr. Director of Product Strategy

James helped launch TradeStation Crypto’s offering which utilizes a true online brokerage model that self-directed investors and traders have come to expect for equities, futures, and foreign currency markets. He is a reputed crypto asset specialist and blockchain thought leader focused on helping people find innovative ways to participate in this space. He is active in the blockchain community with speaking engagements, TV appearances and mentoring. James has over 15 years of experience in the Fintech industry.

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Real Vision, Co-Founder & CEO

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He retired from managing client money at the age of 36 in 2004 and now lives in the tiny Caribbean island of Little Cayman in the Cayman Islands. Previously he co-managed the GLG Global Macro Fund in London for GLG Partners, one of the largest hedge fund groups in the world. Raoul moved to GLG from Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. In this role, Raoul established strong relationships with many of the world’s pre-eminent hedge funds, learning from their styles and experiences.

Other stop-off points on the way were NatWest Markets and HSBC, although he began his career by training traders in technical analysis.

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What Bitcoin Did, Journalist

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Avanti Financial Group, Founder & CEO

22-year Wall Street veteran who has been active in bitcoin and blockchain since 2012. In 2018-20 she led the charge to make her native state of Wyoming an oasis for blockchain companies in the US, where she helped Wyoming enact 20 blockchain-enabling laws. From 2016-18 she jointly spearheaded a blockchain project for delivering market index data to Vanguard as chairman and president of Symbiont, an enterprise blockchain start-up. Caitlin ran Morgan Stanley’s pension solutions business (2007-2016), heldsenior roles at Credit Suisse (1997-2007) and began her career at Salomon Brothers (1994-1997). She is a graduate of Harvard Law School (JD, 1994), the Kennedy School of Government (MPP, 1994) and the University of Wyoming (BA, 1990).

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Bitwise Asset Management, CEO

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Forest For The Trees, Founder & President

Luke Gromen has 25 years of experience in equity research, equity research sales, and as a macro/thematic analyst. He is the founder and president of macro/thematic research firm FFTT, LLC, which he founded in early 2014 to address and leverage the opportunity he saw created by applying what clients and former colleagues consistently described as a “unique ability to connect the dots” during a time when he saw an increasing “silo-ing” of perspectives occurring on Wall Street and in corporate America.

FFTT caters to institutions and sophisticated individuals by aggregating a wide variety of macroeconomic, thematic and sector trends in an unconventional manner to identify investable developing economic bottlenecks for his clients. Prior to founding FFTT, Luke was a founding partner of Cleveland Research Company, where he worked from 2006-14. At CRC, Luke worked in sales and edited CRC’s flagship weekly thematic research summary piece (“Straight from the Source”) for the firm’s clients. Prior to that, Luke was a partner at Midwest Research, where he worked in equity research and sales from 1996-2006. While in sales, Luke was a founding editor of Midwest’s widely-read weekly thematic summary (“Heard in the Midwest”) for the firm’s clients, in which he aggregated and combined proprietary research from Midwest with inputs from other sources.

Luke Gromen holds a BBA in Finance and Accounting from the University of Cincinnati and received his MBA from Case Western Reserve University. He earned the CFA designation in 2003.

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CoinShares, Chief Strategy Officer

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Meltem is passionate about education and advocacy, and teaches the Oxford Blockchain Strategy Programme and co-chairs the WEF Cryptocurrency Council.