The Clean Development Mechanism (CDM), established by the Kyoto Protocol, aimed to connect carbon markets with sustainable development objectives in developing countries. By doing so, carbon sequestration became a globally traded commodity, offering potential economic benefits to land managers. Unlike traditional development models that rely on deferred and dispersed benefit streams, the new carbon market model presents an opportunity to directly link land management and natural resource conservation with specific and immediate market incentives. Studies show that carbon markets can serve as a catalyst for increased tree planting and improved forest management, thereby realizing the multiple benefits of forestry and agroforestry systems. The Chicago Climate Exchange (CCX) has seen a significant increase in corporate participation, with more than six million trades taking place per month. According to a recent summary of the "State and Trends of the Carbon Market 2006" prepared for the World Bank's BioCarbon Fund, the carbon market is experiencing rapid growth. This book examines the concept of CDM and other forestry-based carbon finance mechanisms introduced by the United Nations Framework Convention on Climate Change (UNFCCC) and their impact on carbon markets. It also presents a brief analysis of the growth of the carbon market in India, including its current status and future prospects. The book provides a detailed account of Afforestation and Reforestation CDM Projects, including the A/R Project Design Document by the UNFCCC, in a simplified and concise manner for better understanding of the procedure as a reference guide.

1. CDM Afforestation and Reforestation Project 2. A Sequential Approach to Develop CDM Afforestation and Reforestation Project 3. The Global Carbon Market and Financing of forestation/Reforestation Projects 4. India’s Response to the Carbon Market : Policy and Challenges 5. Conclusion