Forests are closely linked to socio-economic systems in India. The projected climate change is likely to produce adverse impacts on forest ecosystems. India is one of the few countries with a documented forest policy from 1894. This conservation-based forest policy has prevented the diversion of forest. Joint forest management (JFM) promotes the participation of communities in the management of forest. Estimates of forest carbon stock (biomass and soil) are in the range of 8.58 to 9.57 gtC. The growing energy demand provide a strong basis for inclusion of a share of biomass energy in energy production and consumption. India's proposal for compensating forest conservation was included in the Bali Action Plan of COP 13 of UNFCCC. With this approach India can claim to be maintaining the baseline stocks (8.79 gtC), as well as the increment (0.96 gtC).