Motorola’s said its new W233 Renew phone, unveiled in advance of the 2009 Consumer Electronics Show (CES) in Las Vegas, is the world’s first carbon neutral phone.

Motorola unveiled a cell phone made of recycled water bottles hoping to cash in on the trend for environmentally friendly products.

The company, which dropped to No. 4 in the global handset market in the most recently reported quarter due to a weak product line-up, said the W233 Renew eco-friendly phone would be sold by Deutsche Telekom’s T-Mobile USA in the current quarter.

It did not disclose pricing for the phone. Motorola said it was the world’s first carbon neutral phone. As well as using recycled materials for the plastic casing, the company also pledged to offset the carbon dioxide used in manufacturing, distribution and operation of the phone through investments in renewable energy sources and reforestation.

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