Deforestation is one of the major causes of emission of large amounts of CO2 and other greenhouse gases into the atmosphere. Global warming, brought on by increased anthropogenic greenhouse gas (GHG) emissions (421 parts per million compared to 280 parts per million in the pre-industrial era), has altered the climate, reducing ecosystem productivity and water availability, and harming people’s livelihoods. Burning fossil fuels, electricity generation, agriculture, industry, polluting water bodies, and urban activities all contribute to a rise in GHG footprint, with CO2 accounting for 72% of the total. To maintain ecological services, GHG emissions must be balanced with carbon sequestration. Forests are the most important carbon sinks (about 45%) for reducing global warming. Forestlands have been substantially destroyed for agriculture around the world, and deforestation is still occurring today. Afforestation initiatives are emerging as key policy interventions around the world to boost carbon sequestration, but there has been little systematic research on their effects on the livelihoods of forest-dependent communities. Developing strategies to stimulate the use of carbon-sequestering practices face a number of obstacles, including demonstrating additionality, addressing the risk of stored carbon losses, and involving smallholders and pastoralists with shaky land tenure. Carbon sequestration, if appropriately designed, can conserve and/or increase carbon stocks while also improving rural livelihoods.