A closed end financial instrument for the monetization of
greenhouse gases is disclosed. The closed end security has unique features providing for the securitization of
greenhouse gas reductions (e.g., avoidance, sequestration, transformation) on global and sub-global scales. A universal carbon index based on the computed value for metric tons
fossil fuel derived CO2 from measurements of the carbon 14
isotope, directly linked to
fossil fuel emissions, is also disclosed. The 14C based universal index provides a unique and novel market mechanism to value and track
fossil fuel carbon across all reduction genres and measurement platforms. Sub-global indexes for 14C and other GHGs representing partial carbon budgets for specific regions are accounted for within the global budget. The global and sub-global GHG indexes may operate in real time across all GHG currency transactions constituting a live GHG trading regime. An asset allocation
system, based on
trace gas emissions over small to large scales is also disclosed providing a means to manage and reduce GHG emissions with market-based
risk assessment versus return and modern portfolio theory paradigms. Features such as small, mid and large, growth and value are applied to GHG reduction efforts by
trace gas type. The unique elements of financial mechanism, global and sub-global carbon indexes and asset allocation options provide a means to manage, reduce and monetize the burden of GHGs to the
atmosphere and
resultant global warming.