Green & Black's is working on a new carbon reduction programme in Belize that could lead to the company becoming carbon neutral.

The ethical chocolate maker is working with carbon reduction specialist Carbon Gold to pay cacao farmers to turn their agricultural waste and prunings into biochar a form of charcoal.

The waste is burned in special kilns that release just 20% of the carbon into the atmosphere. The rest is turned into charcoal, which stores the carbon for up to 5,000 years, and is used to help fertilise crops.

Five small kilns are currently being installed at farms but Green & Black's MD Dominic Lowe is hoping to introduce larger-scale operations.

"The trick is getting the logistics right," he said. "Belize is a pretty mountainous country but we are looking at bigger kilns that can cope with two to three tonnes at a time."

He described the project as a virtuous circle: "Not only are we taking carbon out but by using the charcoal and encouraging farmers to prune back the trees more they will produce bigger yields and better-quality crops."

The Cadbury-owned company currently buys cacao for its Maya Gold bars from a collective of 1,000 farmers in Belize called the Toledo Cacao Growers Association. If the scheme proves successful Green & Black's would roll it out to all its operations, said Lowe.

The Belize project alone could reduce the company's overall carbon footprint by one third and a wider roll-out would have an even more dramatic effect, he said.