A pilot project in Costa Rica has been converting sawdust and other residues from wood industries into wood pellets, which can be used as an energy source and replace fossil fuels.

The project actually eliminates greenhouse gas emissions in two ways. It reduces fossil fuel consumption, and it keeps the wood residues from decaying on their own. When the residues do decay on their own they release methane, a more agressive greenhouse gas than CO₂.

The project came about through the Clean Development Mechanism (CDM) of the Kyoto Protocol. CDM schemes give carbon credits to those who invest in them, whether they are public or private entities, and are part of the global trade in carbon credits.

Read more from the FAO here