: Carbon has become a tradable commodity due to the Kyoto and Cancun Protocol, whose market value was $176 billion in 2011. The small holders, collectively qualify the minimum tradable carbon amount through carbon sequestration and emission reduction are usually left isolated, mainly for the rigid and expensive CDM protocol. The alternative protocol developed by ICRAF comply the carbon trading rules in the CDM. In this approach, farmers are allowed to continue doing their normal farming practices, but are encouraged to incorporate carbon sequestering and/ or emission reducing practices. The protocol took a grid based approach and it was located between 29̊ 34′ 40″ and 29̊ 37′ 16″ latitude and 79̊ 33′ 33″ and 79̊ 36′ 31″ longitude in Almora district, Uttarakhand, India, which covered 2624 ha area and 13 villages having 1062 householders. Horticulture in private lands and silvi-pasture in common land were implemented for carbon sequestration. Replacement of Edison bulb with CFL, fuel-wood with biogas and solar cooker, and kerosene lamp with solar lantern were implemented as carbon emission reduction interventions. The tree based interventions i.e. 58,768 propagating materials of fruit and 8,700 oak saplings were planted in private and community land, respectively with help of small and marginal farmers during 2010 to 2013, which covered 30 ha area. The energy based interventions i.e. 2032 CFL, 68 solar lantern, 10 solar cooker and 6 biogas plants were installed in the grid area for carbon emission reduction. The standard methods were followed for estimation of carbon sequestration and emission reduction. The potential certified emission reduction (CER, 1 CER = 1 ton CO2) through carbon sequestration from the grid area could be 18865. The carbon emission reduction was about 251 CER year-1. The reduction in electricity bill was estimated as $ 17,000 year-1 by using CFL. Kerosene consumption was reduced by 1224 litre year-1 with the use of solar lantern. The fuel wood consumption was reduced by 32 ton year-1 with the use of solar cooker and biogas plant in the grid area. Thus, the farmers’ socio-economic status will be enhanced through increased livelihood opportunity. Further, the community will be benefitted from carbon trading and will be able to help in mitigating the climate change through the implemented interventions.