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Asked a question 3 months ago

Raoul recently made some tweets about investing in carbon emissions futures. How can retail investors get in on this trade? I've found an ETF, KRBN, but that's really it. Is there something I'm missing?

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Here is a link to the futures contract specs. https://www.theice.com/products/197/EUA-Futures63

Raoul recently made some tweets about investing in carbon emissions futures. How can retail investors get in on this trade? I've found an ETF, KRBN, but that's really it. Is there something I'm missing?

The contract is sized at 1000x the quoted price so currently is a +40k euro notional size for one contract. As with all futures you only need post the margin to hold the contract so that will be specific to your broker. Another way to think about the size of the contract and what it's daily movements would mean in your account. Each 1 euro movement will cause the price of 1 contract to vary by 1000 euros. The current daily movement in ATR is around 1.40 euros so the daily impact as of now would be around 1400 euros. 

Term structure
Term structure

@Moritz Seibert11 did a great tweet thread on trading strategy for EUA Emissions following on @Raoul Pal19 original post you can find here 

https://twitter.com/moritzseibert/status/1369755635974344708?s=20

Although potentially cost prohibitive depending on your investible net worth, I don't think you are restricted from buying the futures as a retail investor.

Hey all  -  I'm quite interested in this trade and yesterday started looking at the KRBN ETF. What is odd is that the website currently says that they are pretty close to 100% in cash, and more specifically it says that their exposure to EU and California carbon futures is exactly ZERO 0%.

Am I mis-reading something?

Raoul recently made some tweets about investing in carbon emissions futures. How can retail investors get in on this trade? I've found an ETF, KRBN, but that's really it. Is there something I'm missing?

@Seth Dingle2 @ALLEN AZAR3 @Spencer Ingresson2 @Moritz Seibert2 @Max Wiethe3 

I would like some more information about investing in carbon emissions futures as discussed in the interview between Raoul and Lawson Steele. 

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