Eversheds Sutherland Advises COtwo Advisors on Launch of First Exchange Traded Product for Physical European Carbon Market

Eversheds Sutherland is pleased to have advised COtwo Advisors, LLC on the launch of the first US-listed Exchange Traded Product (ETP) that offers access to the physical European carbon market.

This innovative financial product provides investors with physical exposure to the European Union Allowance (EUA) market, simplifying investment in carbon allowances.

The COtwo Advisors Physical European Carbon Allowance Trust (NYSE Arca: CTWO) aims to reflect the performance of EUA prices, allowing investors to participate in the growing carbon market without complicated custody arrangements. The Trust’s assets consist primarily of EUAs issued via the European Union Emission Trading System (EU ETS), where each EUA represents the right to emit one ton of carbon dioxide equivalent. The EU ETS is the world’s largest and most liquid carbon market.

“We are pleased to have advised COtwo Advisors on this first-of-its-kind investment product,” said Eversheds Sutherland Partner Eric Simanek. “We are grateful for this opportunity to build on our strong track record of legal representations in the area of exchange traded products and financial services innovation more generally.”

Read the full COtwo press release here.

The Eversheds Sutherland team was led by Capital Markets Partner Eric Simanek, with support from Tax Partner Jonathan Sambur, Tax Counsel Brian Tschosik, Capital Markets Counsel Krisztina Nadasdy and Capital Markets Associate Krystyna Gilkis.