SparkChange Physical Carbon EUA Fund

The SparkChange Physical Carbon EUA Fund is a specialized investment vehicle designed to track the price of European Union Allowances (EUAs), which are carbon credits traded under the EU Emissions Trading System (EU ETS). The primary function of this fund is to provide investors with exposure to the carbon emissions market, one of the largest emissions trading systems globally. EUAs are permits that allow the holder to emit one tonne of carbon dioxide or the equivalent in other greenhouse gases, and are vital for companies operating in energy-intensive sectors, such as utilities and heavy industry, to comply with regulatory requirements. Through physical backing of EUAs, the fund plays a critical role in the financial markets by facilitating transparency and liquidity in carbon markets, thereby supporting efforts to reduce global carbon emissions. It enables investors to participate in carbon finance, promoting environmental responsibility and the transition to a low-carbon economy, while offering a hedge against carbon price volatility.