The Horizons Carbon Credits ETF, set to launch on February 10 on the TSX under the ticker symbol CARB, aims to replicate the performance of an index that seeks to provide exposure to investments in cap-and-trade carbon allowances, while hedging non-Canadian dollar portfolio exposure back to the loonie.
Carbon credits are permits issued through a regulatory organization that allow a company or government to emit a certain amount of carbon dioxide or equivalent greenhouse gas .
The ETF seeks to participate in global carbon credit markets, which have risen as governments worldwide use cap-and-trade systems to push carbon-intensive sectors to change their business models.
“According to Wood Mackenzie, the global carbon trading industry may be valued $22 trillion by 2050.
The fund will be accessible for purchase with ETF units on the NEO Exchange, and as a mutual fund on Fundserv, on or about February 16, 2022.