Carbon forestry projects such as REDD+, A/R CDM and the Green India Mission are based on the neo-liberal principles of privatisation, commoditisation, and marketisation. These market-oriented tools abstract forests from their sociocultural and ecological contexts and reduce their value for carbon forestry. These projects promote plantations of fast-growing species and undermine local knowledge and institutions. The available empirical evidence on the carbon forestry projects indicates that these have an impact on the rights and livelihoods of forest-dependent communities adversely. Hence, it is imperative to critically analyse them before scaling them up.