Due to its ability to accelerate global warming and raise atmospheric temperatures, which in turn causes climate change, carbon (C) emissions pose serious risks to ecosystems worldwide. The agroforestry system (AFS) has the potential to mitigate the negative impacts of climate change by offering unique benefits in both mitigation and adaptation strategies. AFS serves as a sink for carbon dioxide (CO2) by storing C in the soil and tree biomass, thereby reducing CO2 levels in the atmosphere. This ecosystem provided by agroforestry underscores the importance of replenishing C stocks in soil and plant biomass, diversifying production, improving economic stability, and reducing vulnerability to climate change. Therefore, C trading, which involves trading the right to emit CO2, is a practical and effective way to reduce CO2 emissions. This mechanism is viewed as a critical solution for decreasing global CO2 emissions. This chapter critically reviews the concept of C trading, its mechanisms, essential components, the links between agroforestry and climate change, and the role of C trading within agroforestry systems. The paper also explores the potential applications of C trading in agroforestry, highlighting its benefits as well as its challenges.