Guatemala is a country with a large amount of renewable resources the potential for greenhouse gases reduction is promising. At the same time renewable resources have been recently gaining notability as law makers increasingly foster them by providing tax advantages and incentives. In Guatemala, biomass is used in various forms; such is the case of fuel-wood and bagasse. Yet CO2 and other GHGs' emissions continue to be a problem. This work focuses on sugar cane bagasse which is the source of 3% of the final energy consumption and its potential in GHG emission reduction by identifying four possible usages. In the year 2009 Guatemala produced 18 million tonnes of sugar cane. This resulted in an output of 3 million tonnes of bagasse for that year. Out of which, 60% was converted into electricity; the rest was disposed of, sold to cattle ranchers or used as fertilizer. In this work the author tries to identify the advantages or disadvantages of using bagasse in each of the four alternative usages by taking into consideration the available technologies and their potential in reducing greenhouse gas emissions.