SUMMARYAustralia has committed to substantial cuts in greenhouse gas emissions (GHGE) achieved through a national emissions trading system, raising important issues for relatively undeveloped regions of Northern Australia and, in particular, Indigenous lands. Can mostly Indigenous and socio-economically disadvantaged people living in such regions develop institutions to contribute significantly to the mitigation of GHGE, yet pursue regional development? Will national policies adequately recognise the special needs and potential contributions of such communities? These questions and the challenges inherent in them are addressed in this article with reference to a significant initiative involving the community management of landscape fire to reduce annual GHGE from savanna burning. This initiative appears to offer potential for engagement with global carbon markets, but it will need local, national and international support, along with appropriate changes in attitudes and legal arrangements, to ensure an equitable distribution of tangible rewards, while protecting the cultural and related benefits of customary fire use.