Exxon wants a higher carbon tax: this fund would benefit

JExxon Mobile CEO Darren Woods wants a higher carbon tax that would benefit his company and others working to create carbon capture technologies, reports CNBC.

Woods sees direct air capture technologies as the ultimate emissions solution due to their ability to pull carbon out of the atmosphere, and Exxon estimates the market for this type of technology solution will be around $4 trillion. by 2050.

The current carbon dioxide capture price is listed in the IRS tax code, as it is currently capped at $50 per ton captured and stored, while Exxon would like to see that figure above $100.

“If you can overcome some of those technology hurdles, reduce your costs, then you have technology that can solve that problem. [speaking of climate change] in a very profitable way,” Woods said in an interview with CNBC.

The KraneShares Global Carbon Offset Strategy ETF (KSET) is the first US-listed ETF offering investors exposure to the voluntary carbon markets and is structured to provide global coverage of the voluntary carbon markets by tracking carbon offset futures comprising global emissions offsets based on nature (N-GEO) as well as global emissions offsets (GEO) which are traded through CME Group.

Projects that can be found in voluntary carbon markets include traditional carbon capture approaches through reforestation and the like, as well as newer, technology-driven projects such as direct air capture that would benefit from this higher carbon tax.

N-GEOs adhere to the Verified Carbon Standard, which sets requirements for agriculture, forestry and other land use (AFOLU) projects. N-GEOs are also certified to the Verra Registry’s Climate Community and Biodiversity Standard, which selects projects that contribute to climate change goals, support local communities and smallholders, and work to protect and conserve. conservation of biodiversity. The GEOs comply with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) of the VCS, the American Carbon Registry or the Climate Action Reserve.

KSET is structured so that as new markets move, they are included in the fund and have an expense ratio of 0.79%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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