Investment Strategy:
The KraneShares MSCI China Clean Technology Index ETF (KGRN) seeks to track the performance of the MSCI China IMI Environment 10/40 (USD
Net) Index. The Index is comprised of securities that derive at least 50% of their revenues from environmentally beneficial products and services.
The Index is based on five key Clean Technology environmental themes: Alternative Energy, Sustainable Water, Green Building, Pollution
Prevention and Energy Efficiency. The Index aims to serve as a benchmark for investors seeking exposure to Chinese companies that focus on
contributing to a more environmentally sustainable economy by making efficient use of scarce natural resources or by mitigating the impact of
environmental degradation. Constituent selection is based on data from MSCI Environmental, Social, and Governance (ESG).
China’s Environmental Protection Highlights:
• China is projected to account for nearly 60% of new renewable energy capacity that is expected to come online globally by 2028.
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• China is expected to have renewable energy account for over 40% of its electricity consumption by 2027
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• China plans to hit peak emissions before 2030 and reach carbon neutrality by 2060.
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In 2021, China launched its national emission trading
system (ETS)—now the largest carbon market in the world, which should help the country meet its emission reduction goals.
• Historically, China has a proven track record of achieving ambitious long term renewable energy goals set forth within The Five-Year Plan.
KGRN Features:
• Access to China’s fast-growing environmental protection industry that has rapidly become the largest renewable energy market in the world
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• Exposure to companies that stand to benefit from China’s increased focus and spending on clean energy technologies.
KGRN
KraneShares MSCI China
Clean Technology Index
ETF
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1. IEA 2024. “Renewables 2023: Analysis and forecasts to 2028,” International Energy Agency (IEA). January, 2024. Retrieved 9/30/2024.
2. Reuters, “China pledges to achieve CO2 emissions peak before 2030, carbon neutrality before 2060 –Xi”, 9/22/2020, Retrieved 9/30/2024.