The Indian Himalayan Region (IHR) is a globally significant ecological zone that plays a critical role in India’s efforts toward carbon neutrality. This chapter examines the multifaceted role of community-based forest governance, particularly through Van Panchayats (VPs), in promoting forest-based climate mitigation and ecosystem resilience. Drawing on empirical assessments conducted in 35 VPs of the Hawalbagh development block in Uttarakhand, the study quantifies carbon sequestration potential, evaluates forest fire mitigation strategies, and assesses the viability of pine needle-based bioeconomy models. Based on estimates from the Forest Survey of India, the total forest area managed by these Van Panchayats (VPs) is approximately 881.62 ha, which sequesters an estimated 5,289.72 tons of CO2 annually. Furthermore, the collection and utilization of pine needle biomass significantly reduced fire incidences while providing livelihood opportunities to local communities, particularly women. The production of over 11,900 eco-friendly items offset an estimated 2.18 tons of CO2, demonstrating the tangible benefits of circular bioeconomy practices. The chapter emphasizes the importance of integrating Traditional Ecological Knowledge (TEK), participatory governance, and modern monitoring tools to scale ecosystem-based adaptation (EbA) and nature-based solutions (NbS). Despite institutional and policy challenges, the study highlights the potential of VPs to serve as decentralized, inclusive, and scalable platforms for advancing India’s Nationally Determined Contributions (NDCs) and achieving long-term climate goals through sustainable forest management.