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Turn Smog Into Money

Zoe Van Schyndel, CFA
July 9, 2008

On a hot and hazy summer day, it's hard to see a silver lining in global pollution. But a new exchange-traded investment, the iPath Global Carbon ETN (NYSE: GRN  ) , is designed to let investors benefit from the fumes of the modern world. The global carbon emissions market is experiencing explosive growth, and the Carbon ETN is the first fund to provide investors a direct way to access this market. If you are looking for a way to profit from global warming, the Carbon ETN is one of the newest ways to profit from regulations limiting carbon emissions. 

Fund facts
Inception date: June 24, 2008
Expense ratio: 0.75%
Net assets: $4.9 million 

Fund specifics
The Carbon ETN is linked to the Barclays Capital Global Carbon Index, which tracks the performance of carbon credits associated with the world's major greenhouse gas emissions trading schemes. The index currently includes two plans, the European Union Emissions Trading Scheme and the Kyoto Protocol's Clean Development Mechanism. Often known as cap-and-trade systems, carbon emissions trading is one of the ways a country can meet its obligations under the Kyoto Protocol to reduce carbon emissions. Carbon emission credits are traded by companies that get tax breaks and other incentives for lowering the pollutants they put into the air.

U.S.-based companies with some of the highest CO2 emissions include PG&E (NYSE: PCG  ) , International Paper (NYSE: