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The new ETC is designed to track the price of carbon-emissions allowance futures and offers investors a total return. Each ETFS Carbon is initially equivalent to one emissions allowance, which bestows upon the holder the right to emit one tonne of CO2 or the equivalent.

It will trade on the LSE in both euros and sterling, and each will begin trading at about €18.37 (£14.74) from 30 October.

ETFS said the timing of the launch was ideal, as global CO2 emissions have increased by approximately 32 per cent from 1990 to 2005, according to the Energy Information Administration.

Carbon-emissions allowance trading markets have developed as part of the international response to concerns over the environmental effects of increasing global greenhouse gas emissions, in particular carbon dioxide.

The Kyoto Protocol provides a framework for the reduction of global GHG emissions through the establishment of emissions-trading schemes.

Nik Bienkowski, chief operating officer at ETFS, said: "ETFS Carbon is an exciting new development for investors to gain exposure to the carbon-emissions trading market through a listed product on the London Stock Exchange. This development recognises the rising importance of carbon-emissions trading and, more importantly, global warming."

Mr Bienkowski said ETCs were designed to be simple and accessible tools for all types of investors.

"Currently, most investors cannot invest in carbon-emissions allowance futures due to limited market access, but our response to this problem in the form of ETFS Carbon creates a practical and accessible answer for investors."