Carbon Cap Management LLP is now in the pre-launch, book building phase for the launch of The World Carbon Fund. This fund will invest across multiple liquid compliance carbon markets. The Fund will be actively managed by a highly experienced team with deep expertise in carbon pricing, carbon trading, fund management and alpha generation.
We believe that the outlook for carbon prices over the next decade is very positive, however carbon markets can exhibit high volatility driven by a range of “market” and “policy” factors. As such, the fund will deploy two complementary strategies: "Core Long" and "Alpha Strategies". The Core Long strategy will generate returns from a rising carbon price combined with disciplined risk management. The Alpha Strategies will generate returns from arbitrage and relative value strategies deployed across physical carbon, futures and options.
The Carbon Cap management and investment team comprises a combined experience of more than 75 years across investment management, energy and carbon market proprietary trading and global carbon pricing policy design and analysis.
Cap and trade carbon markets are a key policy tool to reduce carbon emissions and facilitate the achievement of the Paris Agreement goals to limit global warming to well below 2 degrees. These markets place cap on total emissions in a region and the cap is reduced annually providing environmental certainty on emissions reductions. Covered entities can trade emissions allowance certificates and this trading activity ensures that the emissions reductions are achieved at the lowest possible cost.
Carbon Cap is committed to developing "market based" solutions that will assist in the capping and reduction of emissions. The World Carbon Fund assists in this objective via direct and indirect means as follows: As the fund grows, it will hold more Carbon, taking this supply out of the market and assisting in providing a strong carbon price "signal" to the market. Secondly, Carbon Cap, as the manager of the fund has committed 20% of the performance fees generated to the purchase and cancellation of carbon allowances/offsets, thereby achieving a direct climate impact.
If you are an institutional or accredited sophisticated investor such as a family office, please get in touch with us for more information.