Climate change has emerged a serious challenge for survival and sustainability of mankind and climate is changing very fast in the last 15-20 years. CDM based markets, only large companies, corporate houses have been access and benefit from it. The small holders who do sequester carbon and also reduce emission do not have capacity to comply with rigid market requirements. Therefore a grid based approach has been developed and validated by ICRAF. In arid to semiarid area of Rajasthan an area of 5000 ha has been selected under Mavli Block in Udaipur District where mitigation options implemented at farm level, house hold level and community level . At the farm level these consist of agroforestry, planting trees for timber, fruits and fodder at private lands, field boundary, and community lands and degraded & wastelands. The field level emission reduction interventions are zero tillage, minimum tillage, spot irrigation, mulches, etc. The energy based interventions include CFL bulbs, smokeless chulhas. At the community level, using solar power charged batteries for street lights, torches, etc. For benefit sharing mechanism a cooperative society of 2000 beneficiaries were made as Gramyajaan Sahakari Paryavaran Samiti which coordinate all activities of interventions by farmers, validation, carbon trading and project sustainability. The important agroforestry interventions made as agri-horticulture, agri-silviculture, industrial wood block plantations and waste land plantations. Energy based household interventions are smokeless stoves, CFLs and solar lanterns. The potential CERs in grid area is more than 25000CERs whereas three years interventions more than 3000CERs were assimilated . Through tree interventions more than 750 ha area was covered under plantatios of Orange, Bael , Pomegranate; Clonal teak, Paraspipal and mix forest sps. tecoma, etc intercrops with maize, Pearl millets, wheat, chickpeas, mustard and barley. Sustainable fund generated up to 2.90 lakhs is the most significant visible indicator for project sustainability. People especially tribal communities were convinced about the climate change, carbon sequestration and emission reduction. From zero to 750 ha area covered under tree interventions and generates CERs which would benefit the farmers if interventions process continued, it would improve the livelihoods of small and marginal farmers without changing their current agricultural practices.