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See V.F.D. (disambiguation) for other uses.
It isn't a cigarette, it's a signaling device. That baby just broadcast our location to every V.F.D. agent for a hundred miles.
 

Verdant Flammable Devices are signaling devices used by volunteers on the fire-fighting side of V.F.D., and are an obvious reference to the initials "V.F.D.". They are described as small green tubes. These are first mentioned in The Slippery Slope. When lit, they give off a dark green smoke and smell like burning vegetables. Quigley Quagmire found them in the V.F.D. headquarters and showed Violet and Klaus how to use them. The Man With a Beard But No Hair also found one and gave it to Esmé Squalor, thinking it was a cigarette. Later, Sunny uses the same "cigarette" to cook lox for Count Olaf's troupe and also to signal to her siblings.[1]

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