COtwo Advisors Physical European Carbon Allowance Trust

CoTwo Physical EUA Trust is a commodity-based investment trust offering direct, physical exposure to the European Union Allowance (EUA) market, the central unit within the European Union Emissions Trading System (EU ETS). As the world’s largest and most liquid carbon market, the EU ETS underpins Europe’s efforts to reduce greenhouse gas emissions by issuing allowances, each representing the right to emit one metric ton of carbon dioxide equivalent. The Trust holds EUAs as its primary asset, providing a transparent and efficient avenue for investors and companies to access and track EUA price performance without the complexities of direct access or custody arrangements. By mirroring EUA price movements, CoTwo Physical EUA Trust serves a dual role: enabling portfolio diversification for investors seeking exposure to the carbon markets, and offering companies with EU ETS obligations a precise tool for hedging and accounting their emission allowance needs. The Trust is managed passively and is structured to align closely with the performance of EUA prices, less operational expenses, making it a unique instrument in both environmental finance and risk management spheres.