Why carbon investors need to pay attention to the UK carbon market

Since the beginning of November 2021, a small proportion (~4.8%) of the capital invested in the KRBN Global Carbon Strategy ETF is allocated to the UK carbon market. That’s one reason for investors to pay attention to UK carbon prices.

The other reason is the insights it can give as to the impact carbon prices are having on one major economy, but even more importantly, the reaction function from government should carbon prices drift too high, too fast. Or indeed, if carbon prices fall too far.