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The Trust offers investors a transparent and regulated vehicle to gain exposure to the EU carbon market through physical holdings of EUAs, which are integral to the EU's climate policy and emissions reduction targets. The EU ETS is a large, liquid market with a defined decreasing cap on emissions, supporting the fundamental demand for EUAs. The Trust's non-discretionary approach aligns with the market's regulatory framework, and its operational setup with established service providers and liquidity partners supports efficient creation and redemption of Shares. The daily NAV calculation based on market prices provides pricing transparency. The Trust's structure allows investors to participate in the carbon allowance market without direct EUA account management or compliance burdens [S1][S2].

The Trust's performance is directly tied to the price of EU Carbon Emission Allowances, which can be volatile and influenced by regulatory changes, market supply-demand imbalances, and broader economic factors. The Trust incurs a management fee and operational expenses that reduce returns. Shares may trade at discounts to NAV due to market liquidity or investor sentiment. The Trust's Sponsor has no prior experience managing similar investment vehicles, which may pose operational risks. The Trust's reliance on liquidity providers and market infrastructure introduces counterparty and operational risks. Regulatory changes in the EU ETS or carbon markets could impact EUA availability, pricing, or the Trust's ability to operate effectively. The Trust reported a net loss and negative EPS in the latest quarter, reflecting operating costs and market conditions [S1][S2].

The Trust's moat derives from its exclusive focus on holding physical EU Carbon Emission Allowances (EUAs) within the regulated European Union Emissions Trading System (EU ETS), a large and liquid carbon market with a decreasing emissions cap. The Trust's structure as a Delaware statutory trust issuing Shares that represent fractional interests in EUAs provides investors with access to the EU carbon market without direct EUA ownership complexities. The involvement of established service providers such as State Street Bank and Trust Company and liquidity providers like Vertis and Redshaw supports operational efficiency and market access. The regulatory framework and the Trust's non-discretionary investment approach limit operational risks and speculative exposure, contributing to business model clarity and stability. However, the Trust's moat is primarily structural and regulatory rather than based on proprietary technology or competitive differentiation [S1].

• Market Price Volatility: The Trust's value depends on the price of EU Carbon Emission Allowances, which can fluctuate due to regulatory changes, supply-demand dynamics, and economic conditions.
• Regulatory Risk: Changes in EU ETS regulations or carbon market policies could affect EUA supply, pricing, or the Trust's operations.
• Operational Risk: The Sponsor's lack of prior experience managing similar investment vehicles and reliance on third-party service providers may pose operational challenges.
• Liquidity Risk: Shares may trade at a discount to NAV, and the Trust depends on liquidity providers to facilitate creation and redemption of Shares.
• Counterparty Risk: The Trust relies on liquidity providers and service providers, exposing it to counterparty risks in EUA transactions and operational support.

• The Trust was formed as a Delaware statutory trust on January 12, 2023, governed by an Amended and Restated Declaration of Trust dated November 27, 2023 [S1].
• The Trust issues common units of beneficial interest called Shares, representing fractional undivided beneficial interest in the Trust's net assets [S1].
• The Trust's assets consist solely of EU Carbon Emission Allowances for stationary installations (EUAs) and cash [S1].
• Shares are issued only in blocks of 50,000 called Baskets, which Authorized Participants can create or redeem at net asset value (NAV) per Share [S1].
• Individual Shares trade on NYSE Arca under the symbol CTWO but are not redeemable individually [S1].
• The Trust does not engage in discretionary trading or speculative buying/selling of EUAs; it holds EUAs on a non-discretionary basis to reflect EUA price performance less expenses [S1].
• The EU ETS is a cap-and-trade system administered by the European Commission, covering about 40% of EU greenhouse gas emissions, with a decreasing cap on emissions over time [S1].
• The Trust holds EUAs in the European Union Registry (Union Registry) [S1].
• The Trust's Sponsor is COtwo Advisors LLC, responsible for management, marketing, and operational oversight, and receives a management fee of 0.79% per annum of daily NAV [S1].
• State Street Bank and Trust Company serves as Transfer Agent, Administrator, and Cash Custodian [S1].
• The Trust has liquidity provider agreements with entities such as Vertis Environmental Finance Ltd. and Redshaw Advisors Ltd. to facilitate creation and redemption of Shares [S1].
• The Trust's NAV is calculated daily based on the market value of EUAs and cash minus liabilities, using ICE Endex settlement prices for EUA futures [S1].
• The Trust reported cash and cash equivalents of $16,816 as of February 28, 2026, and a net loss of $298,801 for the quarter ended February 28, 2026, with basic EPS of -$2.99 [S2].
• The Trust holds no assets other than EUAs and cash and does not engage in other business activities [S1].
• The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not regulated as a commodity pool under the Commodity Exchange Act [S1].
• The EU ETS market is liquid with daily EUA auctions and a large secondary futures market, supporting the Trust's ability to create and redeem Shares [S1].
• The Trust's Shares may trade at a premium or discount to NAV depending on market conditions and liquidity of EUAs [S1].
• The Trust's Sponsor assumes all routine operational and administrative expenses, including fees for service providers, marketing, and regulatory compliance [S1].
• The Trust's financial figures are summarized from the latest available SEC filings and are provided for informational purposes only — not financial advice [S2].