Toronto, ON February 7, 2022 – Ninepoint Partners LP (“Ninepoint”) is pleased to announce that it has expanded its offering of liquid alternative mutual funds with the Ninepoint Carbon Credit ETF.
In response to global efforts to reach net zero targets by 20501, governments around the world are using cap-and-trade programs to incentivize carbon-intense industries to evolve their business models to both meet continued demand and prepare for a low carbon future. These cap-and-trade programs have paved the way for the emergence of global Carbon Credit markets.
An exciting, new asset class has emerged through carbon markets that offers investors a way to buy carbon credit products as an investment – seeking an investment return and hedging against climate transition risks.
The investment objective of Ninepoint Carbon Credit ETF is to seek to provide unitholders with long-term capital appreciation by investing primarily in global carbon emissions allowance futures.
The Fund will initially invest in the major carbon allowance futures globally, namely, the European Union Allowance (the “EUA”), the California Carbon Allowance (the “CCA”) which includes the province of Quebec, and the Regional Greenhouse Gas Initiative (the “RGGI”) which is focused on the northeast United States.
“Wood Mackenzie has estimated that the global emissions trading market may be worth as much as $22 trillion by 20502. Taking a long-term view on the important transition to a clean energy economy – as measured in decades, not years – this Fund will give Canadian investors access to a global asset class expected to see exponential growth,” said John Wilson, Co-CEO, Managing Partner & Senior Portfolio Manager, Ninepoint Partners. “As the first-in-Canada carbon credit fund, Canadian investors now have a new way to benefit from the growing efforts to decarbonize the global economy.The low correlation of Carbon Credit Futures to the broader financial market could provide a natural hedge for any diversified portfolio while potentially improving the resilience of their portfolios against climate transition risks.”
This fund is expected to be available for purchase on Fundserv and NEO Exchange on or about February 16, 2022, and will be eligible for registered plans. The mutual fund series units are expected to be available on Fundserv. Subject to satisfying the NEO Exchange’s original listing requirements, the ETF series units are expected to be available for purchase in U.S. dollars (Ticker: CBON.U) and Canadian dollars (Ticker: CBON) on the NEO Exchange or another exchange or marketplace where ETF series units are traded through registered brokers and dealers in the province or territory where the investor resides.
1 United Nations Framework Convention on Climate Change. Race to Zero Campaign. https://unfccc.int/climate-action/race-to-zero-campaign
2 Wood Mackenzie. (2021, August 11). COP26: Make or break for Global Emissions Trading.
About Ninepoint Partners
Based in Toronto, Ninepoint Partners is one of Canada’s leading alternative investment management firms overseeing approximately $8 billion in assets under management and institutional contracts. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies including North American Equity, Global Equity, Real Assets & Alternative Income. Ninepoint Digital Asset Group is a division of Ninepoint Partners.