'Deeply embedded' carbon markets should weather government changes - Kraneshare's Luke Oliver

Elections in France and the U.S. should not disrupt carbon compliance markets, said Luke Oliver, managing director and head of climate investments at KraneShares. On Tuesday Oliver spoke to Kitco Mining. The KraneShares Global Carbon Strategy ETF (KRBN) is benchmarked to the S&P Global Carbon Credit Index, which covers cap-and-trade carbon allowances. Currently, the index covers the major European and North American cap-and-trade programs: European Union Allowances (EUA), California Carbon Allowances (CCA), the Regional Greenhouse Gas Initiative (RGGI), and United Kingdom Allowances (UKA).The carbon compliance markets are designed to incentivize pollution reduction. In a report from last year, Reuters valued the markets at over $900 billion. France, a pillar nation within the EU, is in the middle of an election with the far-right National Rally (RN) leads the polls, according to polls by EuroNews. The National Rally is at 36% while French President Macron's party is at 20%. The U.S. election is in November. Most polls show a tie. "I think it's possible to see a shift right in the U. S. And I think that a shift right usually sort of correlates with a less climate forward or climate supportive set of policies. But these programs are ...deeply embedded," said Oliver. "We don't foresee any material rolling back of the program."Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.