Land surface albedo constitutes a critical climatic variable, since it largely controls the actual amount of solar energy available to the Earth system. The purpose of this paper is to establish a theory for the exploitation of space observations to solve the atmosphere/surface radiation transfer problem on an operational basis and to generate surface albedo, aerosol load, and possibly land cover change products. Surface albedo is rather variable in space and time and depends both on the structure and on the radiative characteristics of the surface, as well as on the angular and spectral distribution of radiation at the bottom of the atmosphere. Weather and climate models often use preset distributions or simple parameterizations of this environment variable, even though such approaches do not accurately account for the actual effect of the underlying surface. From a mathematical point of view, the determination of the surface albedo corresponds to the estimation of a boundary condition for the radiation transfer problem in the coupled surface-atmosphere system. A relatively large database of 10 years or more of Meteosat data has been accumulated by EUMETSAT. These data, collected at half-hour intervals over the entire Earth disk visible from longitude 0¿, constitute a unique resource to describe the anisotropy of the coupled surface-atmosphere system and provide the opportunity to document changes in surface albedo which may have occurred in these regions over that period. In addition, since the coupled surface-atmosphere radiation transfer problem must be solved, the proposed procedure also yields an estimate of the spatial and temporal distribution of aerosols. The proposed inversion procedure yields a characterization of surface radiative properties that may also be used to document and monitor land surface dynamics over the portion of the globe observed by Meteosat. Results from preliminary applications and an error budget analysis are discussed in a companion paper <Pinty et al., this issue>.