31 the global price of carbon was $51.45 per ton of CO2, but it is estimated that those prices need to hit $147 per ton to meet the global warming limit, providing a constructive backdrop for carbon capture stocks. However, according to IHS Markit, as of Dec. The KraneShares Global Carbon ETF (NYSEARCA: KRBN), a proxy of the carbon market with exposure to carbon allowances, lost 7.2% year-to-date, whereas the SPDR S&P 500 Trust ETF (NYSEARCA: SPY) decreased only 4.1%. The carbon market has recently underperformed the broader equity market. They are prone to high risk, but also promising rewards. Nevertheless, most of the players with exposure to CCUS are carbon capture stocks, with limited revenues, liquidity, and investor information. These technologies can be applied to heavy industries and dirty power plants, giving large carbon-emitting companies more flexibility to adapt to stricter regulations, without obstructing daily operations. Long-term storage of carbon emissions is a relatively new concept that has gained traction in the past few years and will play an important role in meeting net-zero targets by 2050. The rising interest in carbon capture, utilization and storage (CCUS) technologies and lifting carbon prices has created a viable environment for carbon capture stocks.ĬCUS technologies have been around for several decades in the oil and gas industry to enhance oil recovery.
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