Carbon Market Investing with Luke Oliver

The Fat Pitch

In this episode, our guest is Luke Oliver, Managing Director and Head of Climate Investments and Head of Strategy at KraneShares. Luke brings his carbon markets expertise to the show as we dive into a discussion about the trillion-dollar world of carbon trading. From tracing its growth over the past decade to projecting its future potential, Luke covers the complexities of this growing market, including how carbon trading has evolved from a niche corner to a global powerhouse with markets in Europe, California, and beyond, driving substantial investment opportunities.
Our conversation includes carbon market dynamics, from understanding the nuances of futures trading to exploring the role of carbon pricing in shaping investment strategies. We also highlight the investment opportunities inherent in carbon trading, emphasizing its potential for substantial returns and low correlation with traditional asset classes. Luke outlines strategies for integrating carbon exposure into investment portfolios, drawing attention to the role of carbon ETFs in diversification and risk management. We discuss forecasts, policy implications, and investment implications and uncover the immense potential and opportunities that lie in carbon trading. Whether you're a seasoned investor or a curious observer, this episode offers a comprehensive exploration of one of the most dynamic sectors in today's financial landscape.

Recorded April 9, 2024