LowEmissionAsphalt-136pg-WhitePaper-May2023

P a g e | 24 Table 2 – Top 4 Carbon Allowance Markets Trading Volume 2014 vs 2022 (Billions USD) Europe UK California Other Total 2022 $593.7 $27.6 $44.6 $5.9 $671.8 2014 $44.0 -0- $0.3 -0- $44.3 Source: IHS Markit All future carbon market-based instruments (MBIs) will be blockchain technology centered for procurement and administration (valuation) as demand expands. Carbon will likely replace digital currencies in both size and utility and become the most dominant asset traded via blockchain. The development of more robust and reliable carbon offset verification protocols is sorely needed, but well underway. The coming adoption of EPD mandates will be a significant catalyst for our industry (and others), we expect. Prevailing carbon pricing has been steadily rising (Figure 6) . We believe it will evolve into a liquid and fungible currency. Figure 6 – Steadily Rising Carbon (Offset) Pricing 46 Source: Nasdaq 46 KraneShares Global Carbon ETF www.kraneshares.com/krbn-faq/ is benchmarked to the IHS Markit Global Carbon Index www.ihsmarkit.com .