Lowest cost carbon ETF in Australia launched

The Global X Global Carbon ETF provides investors with access to the world's largest carbon markets

Global X ETFs Australia, the Australia-based ETF provider that is a member of Mirae Asset Financial Group, has launched what it claims is currently the lowest cost carbon ETF in the country.

The Global X Global Carbon ETF (GCO2) launched on 14 December and tracks the ICE Global Carbon Futures Index to provide access to the world’s largest carbon markets covering the European Union Emissions Trading Scheme, Regional Greenhouse Gas Initiative, Western Climate Initiative (California cap and trade programme) and the UK Emissions Trading Scheme.

The new ETF has a management fee of 0.45% per year.

“We are witnessing a watershed moment as investors seek out climate-focused investment opportunities, but do not want to compromise on potential returns. GCO2 is an innovative way to leverage the global transition to net-zero, which has significant tailwinds, thanks to government backed climate change targets,” said Global X Head of investment strategy, Blair Hannon.

“Carbon emissions are front of mind for governments and the public alike, so as global decarbonisation and clean energy initiatives become more ambitious, demand for carbon allowances will likely increase – which we expect to push up the price of carbon over the medium to long term.”

GCO2 is the fourth product launched by Global X ETFs Australia since it rebranded from ETF Securities in September this year and the 27th product overall with almost $5bn in assets under management.