An initiative to improve the health, wealth and environment of Malawians is being driven by a proposal to trade in carbon credits. The concept is to trade carbon credits earned by curbing the effects of climate change through mechanisms established under the 1997 Kyoto Protocol, to cover the cost of improving the lives and health of vulnerable communities in the world's poorest continent, which is also the least responsible for producing the greenhouse gases contributing to climate change. "We believe what we are trying to do will work well, although it might take a few years to see large-scale results. This methodology is different to the traditional approach to development aid, as it is output- rather than input-orientated," Malawi-based Conor Fox, one of two men behind the venture, told IRIN. "Almost every country in Africa is signed up to Kyoto. We decided to set up our operation in Malawi in February [2008] because it is one of the continent's least developed countries, which makes it one of the most vulnerable to climate change," Fox said.

According to a 2003 report by Malawi's National Energy Plan, the landlocked country, with a population of about 12 million, derives 93 percent of its energy needs from wood. As a consequence, the National Forestry Plan estimates that about 2.8 percent of the remaining woodland is being lost annually. Reducing Malawi's reliance on wood as a source of energy would not only lower the levels of CO2 entering the atmosphere, but also prevent rivers from becoming silted up, soil erosion, and other negative environmental impacts such as the seasonal drying of water courses and flash flooding. Fox and his UK-based partner, John O'Connor, who is managing the commercialisation of the enterprises, have launched two projects to reduce wood consumption