Climate change is real and is occurring at an alarming rate. Currently, worldwide deforestation alone accounts for approximately 18-25% of global greenhouse gas emissions, yet this could be curbed quickly by avoiding deforestation. Forests act both as a carbon source and sink depending on the management regime, and hence can play an important role in stabilising atmospheric concentrations of greenhouse gases (GHGs) such as carbon dioxide (CO₂). The concern to reduce concentrations of GHGs and CO₂ in order to mitigate global warming has led to the global agreement on the Kyoto Protocol. Under the Protocol, in non-industrialised or developing countries the forest is only permitted as a sink measure in the form of afforestation and reforestation activities; thus the Protocol does not address the huge emissions taking place as a result of deforestation. Forests are not recognised as sources of emissions which can be reduced by avoiding deforestation. One reason for not crediting avoided deforestation under the Kyoto Protocol is uncertainty in quantifying and controlling leakage. Many communities in non-industrialised countries have been successful in transforming the deteriorating state of their natural forests to sustainable management, thereby avoiding deforestation and the subsequent release of CO₂ emissions into the atmosphere. Some examples of sustainable forest management practices are the Joint Forest Management Programme. These types of community management also result in additional carbon sequestration, but credit for these cannot be claimed under the Clean Development Mechanism (CDM). This book reports on the work carried out by the research project, 'Kyoto: Think Global Act Local', which aims to bring local sustainable forest management projects under the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol. The book draws on work carried out in Uttarakhand State, and in Nepal, in Ilam, Lalitipur, and Manang districts. The project gathered data to show that community-managed forests can play important roles in mitigating the adverse impacts of climate change by sequestering CO₂ from the atmosphere. The levels of CO₂ sequestered annually were quantified from six research sites using the Intergovernmental Panel on Climate Change (IPCC) guidelines. This is probably the first time that the protocol for carbon assessment in the Himalayan region has been carried out. The results show that local people can be trained to assess carbon levels in their community forests. Community-managed forests in the Himalayan region are becoming an important carbon pool, as previously deforested areas in these forests are showing signs of regeneration. The mean carbon sequestration rate for community forests in India and Nepal is close to 2.79 t C ha^-1 year^-1, or 10.23 t CO₂ ha^-1 year^-1, under normal management conditions and after local people have extracted forest products to meet their sustenance needs. In monetary terms, forested land at existing CDM market prices for CO₂ tonnes could be worth anywhere between US$ 162.84 ha^-1 year ^-1, at a rate of US$ 12 per tonne CO₂ and based on biomass data from India, to as little as US$ 34.45 ha^-1 year^-1, at US$ 5 per tonne and based on biomass data from Nepal. With increasing areas being brought community management, forests in large parts of the India and Nepal Himalaya are improving and becoming major carbon sinks. The methodology used by this study is important, as it enables quantification of carbon sequestration levels which is required to claim carbon credits. In view of the rise in human and livestock populations in the Himalayan region, carbon trade could be an incentive for forest conservation and management if payment for carbon from avoiding deforestation is recognised. There is little doubt that if carbon payments can be made to communities conserving their forests, this will not only increase community revenues, it will also provide incentives for better forest conservation and management, both of which have beneficial impacts on emissions reduction as well as on the sustainable development of communities and their environments. Realising that nearly a quarter of the GHG emissions from deforestation is unaccounted by and outside of the UNFCCC, there is growing interest to include deforestation in the second commitment period after 2012. A recent development, the proposed Reduced Emissions from Deforestation (RED), if implemented, could make the UNFCCC more effective in reducing emissions and combating climate change. At the same time, RED would also recognise measures for avoiding deforestation in non-industrialised countries, which could be an incentive to further conserve and manage forest more effectively. This book is intended to generate awareness on climate change and the role forests in general, and community forestry in particular, play in regulating climate change. The book will be relevant to professionals, researchers, policy makers, and students interested in the topic. In particular, we hope it will be useful to professionals working in community forestry projects in their endeavour to promote payment for CO₂ sequestered by community forests. The book also narrates the IPCC guidelines for measuring carbon. This research was funded by the Netherlands Development Cooperation (DGIS). The project was carried out in partnership with the Central Himalayan Environment Association (CHEA) and the National Trust for Nature Conservation (NTNC), formerly known as KMTNC. CHEA, based in Nainital, Uttarakhand, was responsible for coordinating field activities in the sites in India, while NTNC coordinated field activities in Nepal.