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Investments.

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Global Carbon Strategy Fund

Total return from investments in carbon and environmental markets

The Global Carbon Strategy Fund is an Irish QIAIF (Qualifying Investor Alternative Investment Fund) arranged and advised by Klimaworks Ventures Ltd. 

The fund is actively managed and invests into liquid and regulated carbon markets and regional cap-and-trade programs, including those that might develop in the future.

 

Pursuing a tactical long-biased allocation across multiple environmental regimes, the fund targets positive returns by holding carbon allowances and related futures, options and forwards.

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Global Carbon Strategy Fund - Investment Summary

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Investment Strategy

Generate positive returns from tactical long-biased allocation across some of the largest and most liquid markets for carbon dioxide emissions allowances (so-called “permits to pollute”) in multiple regions or jurisdictions.

Actively managed and invests into a global basket of liquid and regulated emission trading systems by holding physical carbon allowances, futures, options and forwards.

 

Carbon allowances and related financial instruments are standardized instruments that allow for liquid trading on exchanges. 

Key Features and Benefits

Allows investors to directly or indirectly hold cross-continental stakes in selected markets for carbon dioxide emissions allowances that are issued by regulators under major regional cap-and-trade programs, including those that might develop in the future.

Carbon related investments represent an alternative asset class that helps combat climate change by incentivizing emissions reduction.

Investment can serve as a hedge for investors that are concerned about the increase in cost of carbon emissions on their portfolios as companies with heavy carbon footprints are expected to suffer from adverse impacts in the future (e.g. social and regulatory pressure, higher cost of capital, decreasing valuations, stranded assets).

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Market Catalysts

Carbon allowances and offset prices are expected to increase worldwide as governments ramp up their climate ambition, which offers opportunity to participate in tightening carbon emissions regulation.

As more companies are subject to carbon emissions regulation worldwide, the demand for carbon assets - particularly carbon dioxide emissions allowances - is expected to increase.

Target Return

10-15% annualized return

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Fund Structure

Irish QIAIF (Qualifying Investor Alternative Investment Fund).

Fund Domicile

Ireland

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Share Class Currencies

EUR, USD and GBP

Minimum Investment

100,000 in each currency

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Management Fee

1.25% - 1.50% p.a. depending on share class

Performance Fee

15%

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ESG Credentials /

Climate Impact

The investment seeks climate impact and qualifies as “Article 9” fund under the EU’s Sustainable Finance Disclosure Regulation (SFDR) by aligning the investment objectives with global emissions reduction targets and long-term climate temperature goals plus by committing 10% of performance fee to purchase and cancel physical carbon allowances/offsets in order to have direct climate change impact. 

Important Note: No information published on this website constitutes an offer or a solicitation of an offer or a recommenddation to subscribe to any investments, products or services. Any such offer will be made pursuant to a formal offering memorandum or sales prospectus. Past performance is not indicative of current or future performance. The value of investment and the income from them can fall as well as rise and is not guaranteed. 

Reasons to invest in the Global Carbon Strategy Fund

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Carbon as a new asset class with positive ESG impact

Carbon has become a liquid and investable asset class with race to net-zero and new national markets establishing their offset schemes. This drives investor demand with daily trading volume of over 2 billion USD across physical carbon, futures, and options.

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Low correlation

Carbon has exhibited a low correlation with other asset classes.

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Strong market fundamentals with forward-looking risk premium for carbon

The key to decarbonizing our economies will be an adequately high and universally applied price for carbon. Long-term price appreciation for carbon allowances anticipated due to regulatory pressure and rising demand.

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Inflation hedge

In certain regulatory regimes the carbon price is directly linked to inflation numbers, e.g. in the California ETS the floor price rises by an annual inflation adjustment.

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Structural market features with political and regulatory tailwind

Carbon markets reduce the supply of carbon allowances each year, targeting higher prices in order to stimulate emissions reduction.

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Climate risk hedge

Carbon investments serve as an equity hedge because increasing carbon prices will negatively affect equity earnings of companies with heavy carbon footprints. An actively managed exposure to carbon may provide a partial hedge to these risks.

Invest in Global Carbon Markets now