Today we're going to reveal the ETF Michael Robinson is recommending in his teaser presentation headlined Elon Musk's "Secret Currency."
Not only are we going to name this ETF, but we'll also explain if it's a good investment and everything else you need to know about it.
I created a whole video that covers all this that you can watch below.
I also added the transcript under the video if you'd rather read through everything.
Transcript Of Video
Here's a quick summary of the presentation and the ETF being recommended: If you want an in-depth breakdown of this teaser and this investment opportunity, make sure to watch past the summary.
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This presentation has to do with carbon credits and cap and trade. Cap and trade is when a government sets limits on pollutants. Governments set limits on carbon, and companies that are under the limits can sell their carbon credits to companies over the limit, so the companies over the limit don't have to pay fines.
Musk has made billions for Tesla by selling carbon credits to other car makers.
Michael Robinson is recommending Krane Shares Global Carbon Strategy ETF as a way to invest in carbon credit prices. This ETF buys carbon credits and sells them.
Is this a good investment? Keep watching as I give a more in-depth breakdown of all this.
What Are Carbon Credits?
The secret currency Robinson is talking about is carbon credits. If you're a little confused about what these are, here's a description of them:
Carbon credits are a type of tradeable certificate or permit representing the right to emit one tonne of carbon dioxide or the equivalent amount of a different greenhouse gas. They are a tool used to reduce the emission of greenhouse gases, which contribute to global warming and climate change.
Carbon credits are part of international attempts to mitigate the growth in concentrations of greenhouse gases. The idea is to allow market mechanisms to drive industrial and commercial processes towards lower emissions.
Carbon credits are part of several international approaches such as the Kyoto Protocol's Clean Development Mechanism (CDM) and the European Union Emission Trading Scheme (EU ETS). Under these systems, a country or company that emits less than its quota of greenhouse gases earns carbon credits, which it can sell to others that exceed their quotas.
In essence, carbon credits create a market for reducing greenhouse emissions by giving a monetary value to the cost of polluting the air. This way, companies are incentivized either to reduce their emissions or to pay others to do so on their behalf. As such, they're a key tool in the fight against climate change.
Benefits Of Investing In Carbon Credits
Investing in carbon credits can be both an environmentally friendly move and a potentially profitable one. It can provide investors with a financial incentive to support projects and technologies that reduce carbon emissions, effectively merging environmental and financial goals.
One major benefit of investing in carbon credits is that it can potentially result in a dual positive outcome. You might not only receive a financial return if the value of the carbon credits appreciates over time, but you're also supporting efforts to reduce carbon emissions and combat climate change.
Investing in carbon credits also encourages more businesses to become environmentally responsible. As the demand for carbon credits grows, more businesses could see the potential financial benefits of reducing their carbon emissions and investing in more sustainable operations.
Negatives To Investing In Carbon Credits
However, there are also several drawbacks and risks associated with investing in carbon credits.
One of the main disadvantages is that the carbon credit market can be quite volatile and unpredictable. The value of carbon credits can fluctuate depending on a variety of factors, including political and regulatory changes, the overall health of the economy, and changes in public sentiment towards climate change and carbon emissions.
Additionally, the carbon credit market is complex and can be difficult to understand for many investors. It is also relatively new, and as such, there might be less historical data and research available for investors to use in making informed decisions.
Moreover, there's a risk of fraudulent activities in this market. There have been cases of companies selling carbon credits that they don't have or making false claims about the environmental impact of their projects.
Lastly, investing in carbon credits might not result in as large or as immediate a reduction in carbon emissions as direct investment in renewable energy sources or energy-efficient technologies. The impact on carbon emissions will depend on the specific projects being funded by the carbon credits and how effectively those projects are implemented.
In conclusion, while investing in carbon credits can potentially be profitable and environmentally beneficial, it also comes with a significant level of risk and uncertainty. Therefore, it's essential for potential investors to fully understand the market and the specific carbon credits they're considering before investing.
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