Investing & personal finance
Our guides to investing, saving and personal finance
Can EUAs protect your portfolio against inflation?
Inflation erodes investment value; hedging mitigates this risk. European Union Allowances (EUAs) offer diversification and act as an effective hedge against unanticipated inflation due to their unique market dynamics and lack of correlation with traditional financial assets. EUAs can be part of a responsible investment strategy.
July 2, 2024
How to use the MACC marginal abatement cost curve to know the impact of my investment?
Understand carbon abatement cost curves (MACC) to prioritize cost-effective emission reductions and maximize the climate impact of investments. By understanding the MACC, investors can make informed decisions about investing in carbon allowances and sustainable technologies, driving demand and pushing the price of carbon higher, making emission-intensive practices costlier. This knowledge helps align financial and climate goals by timing investments based on EUA prices and technological advancements.
June 14, 2024
Can I permanently delete carbon allowances?
Deleting carbon allowances permanently reduces the carbon budget, combating climate change. Anyone can cancel allowances, and holding them before canceling maximizes impact on responsible investing and green finance. This is a form of impact investment in the European carbon market.
June 7, 2024
How Individual Investors Can Strengthen Carbon Markets
Traditionally limited to compliance entities and large investors, carbon markets are now opening to individual investors via platforms like Homaio, increasing market stability and supporting decarbonization efforts. This expansion is gaining political support, as seen in South Korea's recent initiatives.
April 17, 2024
Comment vos finances personnelles peuvent-elles lutter contre le changement climatique ?
L'UE doit combler un déficit d'investissement climatique important pour atteindre ses objectifs environnementaux d'ici 2030. Les citoyens européens, avec leur épargne considérable, peuvent contribuer en investissant dans des initiatives comme les quotas carbone (EUA) du EU ETS, soutenant ainsi la transition vers une économie plus verte tout en générant potentiellement des rendements financiers. Investir dans le marché du carbone, notamment en 2024, représente une opportunité pour les particuliers d'agir concrètement contre le changement climatique.
April 12, 2024
What is a carbon ETF and why are spot EUA investments better?
EU carbon allowance ETFs offer financial exposure to the EU ETS through futures contracts, but unlike investing directly in the spot market, they lack direct environmental impact and are primarily for financial speculation. These ETFs allow investors to track carbon market performance and diversify portfolios, but are not considered green or ethical investments. Investors seeking responsible investing should be aware that these ETFs do not contribute directly to reducing carbon emissions or supporting sustainable development.
March 22, 2024
How to design an Investment portfolio: enhancing your strategy with diversification through EUAs
Diversification is crucial for investing in the stock market to mitigate risk and enhance portfolio stability, including considering assets like EUAs (European Union Allowances). EUAs offer investment diversification with proven positive environmental impact, making them suitable for socially responsible investing and ethical investments. Climate finance experts recommend allocating a portion of your investment portfolio to diversification assets like EUAs, contributing to both financial resilience and climate action.
March 14, 2024
Are EU carbon market allowances a volatile investment?
This article discusses volatility in investing, particularly in carbon markets (EUAs). EUAs have a clear long-term price direction (upward) due to policy driving carbon pricing, making them potentially suitable for long-term investors despite short-term volatility, with 2024 presenting a good entry point.
March 14, 2024
A Guide to Investing in Climate Change: Best Practices
Navigate climate change investing with transparency by understanding regulations, avoiding greenwashing, and exploring options like the EU ETS for impactful and potentially profitable responsible investment. Investing in the stock market and investing in ETFs (Exchange-Traded Funds) are options for environmentally beneficial projects, but investors need to be wary about ethical investments. Investing in sustainable development requires mitigation and adaptation for ethical investment.
January 16, 2024