Vatican under the name of KlimaFa declares its plans this summer to plant trees to restore an ancient forest on a denuded island by the Tisza River.

Its name will be Vatican Climate Forest. It is expected in theory that the young trees will absorb as much carbon dioxide as the Vatican makes through its various activities in 2007.

In so doing, the Vatican declared, world's first carbon-neutral state will come into existence.

"As the Holy Father, Pope Benedict XVI, recently stated, the international community needs to respect and encourage a 'green culture,' " said Cardinal Paul Poupard, head of the Pontifical Council for Culture, who took part in a ceremony marking the event at the Vatican. "The Book of Genesis tells us of a beginning in which God placed man as guardian over the earth to make it fruitful."

In addition to installing solar panels, the Vatican are prepared to set an example by offsetting its carbon emission. Inspired by KlimaFa, Hungarian government scientists are planning to restore environmentally degraded, abandoned land as a native forest. It will have climatic effect and provide jobs to many. Several European governments including Dell, the computer maker, have bought carbon offsets. The 630-acre island will be planted abundantly.

David Gazdag who brokered the project with backing from his San Francisco parent company, Planktos International, said,  "It seems so obvious, but no one was doing it".

Laszlo Galhidy, forestry officer for the environmental group WWF Hungary, said, "Planting forests is only "a partial solution, and a temporary one".