GRN Profile
The iPath Series B Carbon ETN is designed to provide investors with exposure to the price fluctuations of carbon emissions credits through a sophisticated financial instrument. This exchange-traded note (ETN) tracks an index that measures the performance of futures contracts on carbon emissions credits. These contracts are integral to two of the world's leading emissions trading systems, reflecting the price dynamics of carbon as a commodity.
The index underlying the iPath Series B Carbon ETN comprises futures contracts that are traded on the ICE Futures Europe exchange. This exchange is known for its significant role in the global carbon market, offering contracts that are representative of the European Union Emission Trading Scheme (EU ETS) and other major carbon markets. By investing in these futures contracts, the ETN seeks to mirror the return of the index, which is influenced by changes in carbon credit prices and trading activity.
Carbon credits are crucial in the global effort to mitigate climate change, as they represent a reduction in greenhouse gas emissions. The futures contracts tracked by the iPath Series B Carbon ETN are linked to the carbon markets that are central to international climate agreements and carbon reduction goals. The ETN provides investors with a mechanism to gain exposure to the carbon market without directly participating in the futures contracts themselves.
By offering exposure to the carbon emissions trading market, the iPath Series B Carbon ETN caters to investors interested in environmental sustainability and carbon pricing. It allows them to potentially benefit from movements in carbon credit prices while supporting the broader goal of reducing global greenhouse gas emissions. This financial product is an option for those looking to diversify their investment portfolios with assets linked to the emerging green economy and climate change mitigation efforts.
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