Wood fuelled heating systems (sometimes known as Biomass heating) can be ideal if you live in areas without access to a mains gas supply. A biomass boiler could provide all of the heating and hotwater needs of your home, whilst helping to reduce CO2 emissions through use of sustainable fuel sources. Wood fuelled heating will be eligible for clean energy cash back from April 2011 onwards. 
This technology is a sustainable option even though burning wood releases CO2. The CO2 emitted is simply the CO2 absorbed by the plant during its growth. Provided that these trees are replaced, the fuel is zero carbon.