The governments around the world are focused on moving towards goal of net-zero emissions by 2050 set by the 2015 Paris agreement. Some of the largest companies have also voluntarily committed to a net zero emissions target because investors care for the environment, and investment giants like BlackRock are pressuring them to reduce their carbon footprint.

Microsoft (MSFT Quick QuoteMSFT - Free Report) plans to be carbon-negative by 2030 and Apple (AAPL Quick QuoteAAPL - Free Report) , which is already carbon neutral for corporate emissions worldwide, plans to bring the carbon footprint for its entire supply chain and products by then. In addition to investing in renewable energies and carbon capture technologies, some companies use carbon offsets.

Another way for companies to manage their carbon footprint is to buy and sell emission allowances. In the cap-and-trade system, a government sets a limit on overall emissions which is tightened over time. Big carbon emitters need to buy these pollution permits to stay under regularity caps.

Europe has had stricter emissions guidelines than the US and as well as a well-developed carbon market. The European Union’s carbon-trading program is the world’s largest and most heavily traded carbon market

The KraneShares Global Carbon ETF (KRBN Quick QuoteKRBN - Free Report) and the iPath Series B Carbon ETN (GRN Quick QuoteGRN - Free Report) provide diversified exposure to global carbon markets through futures contacts. They have gained more than 120% and 175% respectively over the past year. To learn more, please watch the short video above.