Carbon Emission Allowance ETFs: Complete List of Carbon ETFs

The EU Emissions Trading System, set up in 2005, was the world’s first international cap-and-trade program and remains the largest multi-national greenhouse gas emissions trading scheme in the world. Carbon emission allowance ETFs give exchange-traded access to the futures contracts underlying these compliance carbon markets — where each allowance represents the right to emit one tonne of CO₂.

Under a cap-and-trade system, the government sets an emissions cap and issues allowances consistent with that cap. Emitters who reduce their output below the limit can sell surplus permits, while those facing higher abatement costs can buy allowances on the open market. As the cap declines over time, the supply of permits shrinks and their unit cost tends to rise. The EU’s “Fit for 55” reform increased the annual cap reduction from 2.2% to 4.2%, targeting a 62% emissions cut by 2030 compared to 2005 levels.

Carbon allowance ETFs don’t just track the EU ETS. Several funds cover multiple compliance markets:

• EU ETS (EUAs): Covers approximately 40% of EU emissions across 27 member states plus Iceland, Liechtenstein, and Norway. Maritime transport was added from 2024.
• California Cap-and-Trade (CCAs): Launched in 2012, it covers about 80% of California’s greenhouse gas emissions and is linked with Quebec’s market.
• RGGI: The first mandatory GHG emissions trading system in the United States, launched in 2009 across 11 northeastern states, focused on the power sector.
• UK Allowances (UKAs) and Washington State (WCAs): Also included in broader global carbon credit indices.

The main provider of U.S.-listed carbon emission allowance ETFs is KraneShares. KRBN tracks the S&P Global Carbon Credit Index, offering broad coverage across all major cap-and-trade programs. KEUA provides targeted exposure to European Union Allowances only, while KCCA focuses exclusively on California Carbon Allowances. All three trade on the New York Stock Exchange. Barclays also offers the iPath Series B Carbon ETN (GRN), which tracks ICE Futures Europe contracts.

China and South Korea also operate national cap-and-trade programs — South Korea became the first country in Asia to launch a mandatory nationwide scheme in 2015 — though ETF coverage of these markets remains limited. For broader commodity ETFs or other thematic funds, see our ETFs by sector and industry list.

The table below lists carbon emission allowance ETFs with live pricing, including both UCITS and U.S.-listed futures-based products.

A Comparison List of Leading Carbon ETFs

Stock	Price	Change %	Chart (24H)	52 Week Range
KraneShares Global Carbon Strategy ETF KRBN	$31.54	1.47%
KraneShares California Carbon Allowance Strategy ETF KCCA	$14.95	0.07%
iPath Series B Carbon Exchange-Traded Notes GRN	$29.57	1.68%
Harbor ETF Trust Harbor Energy RENW	$12.67	0.29%
KraneShares European Carbon Allowance Strategy ETF KEUA	$22.82	0.22%