The Intergovernmental Panel on Climate Change IPCC Fourth Assessment report has highlighted the role of tropical forests in mitigating climate change. Deforestation, especially in tropical countries, contributes about 20 percent to total global greenhouse gas emissions. Development projects geared to reduce the rate of deforestation and forest degradation, and to establish forest plantations will help reduce greenhouse gases in the atmosphere, and significantly contribute to mitigating climate change. Three cases of forestry carbon projects underway in the Philippines are presented to illustrate the constraints facing project developers in undertaking these climate change mitigation efforts. Among the key lessons identified are: the difficulty in establishing land eligibility, the need for partners or buyers from industrialized countries to shoulder the transaction costs, and the crucial role of the local communities, including indigenous peoples, in the development effort.