(VIDEO) How to Invest in Carbon Credits (Through the PUBLIC Markets)

Jason Howell |
Categories
Sustainable Investing

"I think we're going to see an expansion of the system, not just in Europe but worldwide. I mean, you see California, you see Northeast Regional Gas, you see Washington State; Japan, Korea, they're all in the system of deploying and developing. China recently created a mandatory market. There's certainly a momentum building and I would expect to see more mandatory markets developing regionally and my expectation over time those regional markets will merge into a global market."

- Ron Gutstein, Founder, COtwo Advisors, LLC

Join a conversation with Ron Gutstein, founder of COtwo Advisors, LLC (CO), (https://www.cotwoadvisors.com/) as we discuss how verified carbon credits through the European Union Allowance inspired the business plan to secure investor backing to support an Exchange Traded Product (ETP) for retail and institutional investors. In our conversation, we (try to) answer the follow questions: 

đź“Ś What are “carbon credits?” 

📌 What is the “European Union Allowance” market?

đź“Ś Are Exchange Traded Products (ETPs) similar to Exchange Traded Funds (EFTs)? 

đź“Ś What is the difference between investing with your fund and carbon credits in the futures markets 

đź“Ś Why hasn’t this been available in the United States previously? 

đź“Ś What are (some of) the risks to this investment category?âś± 

đź“Ś What’s next in this space? 

 

Jason Howell Company is the family wealth management firm that serves ALL family members for ALL things financial. Our specialty is multigenerational wealth planning.

Jason J. Howell, CFP®, CPWA®, CSRIC® and Douglas W. Tees, MBA, CFP® CAP®, CBDA  have spent a lot of time in the Washington, DC area, and are aware that many people who are first generation wealth suffer from a kind of "financial imposter syndrome."  Successful entrepreneurs and family businesses are always looking over their shoulder; government contractors worry about the next contract; former Capitol Hill staffers privately wonder if they should "feel bad" for the money they now make. Imposter syndrome is common among people who work for the many corporate headquarters based in this area as well. These feelings get in the way of properly managing family wealth. We empower them to get organized, build a team of advisors and make decisions.

Our typical "first generation wealth" families include dual income parents who work, save and have just the right amount of fun. For long-time, family owned businesses we focus on much family preservation as we do wealth preservation. 

First generation wealth success stories and family business owners realize that they:

  • Need to “do something” with the cash in their checking/savings
  • Need to eventually diversify their portfolio away from the family business
  • Need an investment strategy for “up” and “down” markets
  • Need a plan to mitigate market, credit, inflation, and political risks
  • Need to start tax planning instead of just tax paying
  • Need to be sure they are choosing the right work benefits
  • Need to reduce financial miscommunications between family members
  • Need to separate business finances from personal finances
  • Need to separate family wealth from individual wealth
  • Need a plan to provide space for both family and individual philanthropy
  • Need to plan for money while alive and for what happens after death

To learn more about our unique offering, contact us for a complimentary initial strategy session: click here.


âś±The information/conversation presented is for informational and educational purposes only and should not be considered investment, legal, tax, or accounting advice. It is not a solicitation or offer to buy or sell any financial instrument. This content is general and does not address individual circumstances, nor does it constitute comprehensive professional or financial advice. Investing always involves risk, potentially including the loss of principal. Past performance is not an indicator of future outcomes. Market conditions can change. You are responsible for evaluating the risks and merits of any information discussed before making decisions. It is advisable to consult with your own financial, legal, and tax advisors for personalized guidance. Important Information This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit https://www.cotwoadvisors.com/prospectus 

The Trust (CTWO or “The Fund”) ) is not an investment company registered under the Investment Company Act of 1940 (the “1940 Act’) and is not subject to the same regulatory requirements as mutual funds and more traditional exchange traded funds. An investment in the Trust is not intended as a complete investment plan. Because the Trust only holds EUAs or cash, an investment in the Trust may be more volatile than an investment in a more broadly diversified portfolio. Accordingly, the NAV may be more volatile than another investment vehicle with a more broadly diversified portfolio and may fluctuate substantially over time. Investing involves risk, including possible loss of principal. An investment in the Trust may be deemed speculative, therefore investors should review closely the objective and strategy, the investment and operating restrictions and the redemption provisions of the Trust as outlined herein and familiarize themselves with the risks associated with an investment in the Trust. Each investor should consult with his or her own advisors in respect of legal, tax, regulatory, accounting and other consequences of investing in the Trust. If you are not prepared to accept significant and unexpected changes in the value of the Trust, you should not invest in the Trust. Some factors to consider before investing in the Trust are: 

  1. Secondary market purchases and sales of Shares are subject to customary brokerage commissions and charges.
  2. The investment objective of the Trust is for the Shares to reflect the performance of the price of EUAs, less the expenses of the Trust’s operations. There can be no assurance that the value of the Shares, traded on the secondary market, will reflect the value of the Trust’s investment in EUAs
  3. An investment in the Shares is speculative and involves a high degree of risk. There is no assurance the Trust will achieve its investment objective or avoid substantial losses. A potential shareholder should not invest in the Shares unless he or she can afford to lose the entire investment.
  4. Future governmental decisions may have significant impact on the price of EUAs, which may result in a significant decrease or increase in the net asset value of the Trust.
  5. New technologies may arise that may diminish or eliminate the need for cap and trade markets. Ultimately, the cost of emissions credits is determined by the cost of actually reducing emissions levels. 

Foreside Fund Services, LLC, serves as the Marketing Agent for the Trust.