The W233 Renew will be available from T-Mobile in the US sometime in the first three months of the year for an as yet undisclosed price.
The product is expected to arrive in Europe in the second half of the year.
The phone is carbon neutral because Motorola has offset the carbon dioxide required to manufacture, distribute and operate the phone by investing in renewable energy sources and reforestation through non-profit carbon offsets provider Carbonfund.org.
Motorola is claiming it is the first carbon neutral handset and Carbonfund.org has given it its CarbonFree product certification.
Efforts to be greener have also gone into the product's packaging, which has been reduced in size by 22%.
The box and the materials inside are printed on 100% recycled paper and there is a postage-paid envelope for users to return the phone to be recycled.
Jeremy Dale, corporate vice-president of global marketing at Motorola Mobile Devices, said: "Today, natural resources, energy and time are more precious than ever before."
Interestingly, Nokia was judged to be the greenest consumer electronics manufacturer by Greenpeace in its due to its take-back policy in India.
Motorola was placed equal fourth out of a total of 18 companies while Nintendo and Microsoft were at the bottom of the league.
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