Brief accounts of the recent development in the international negotiations of the climatic treaty as well as the stand and efforts on climate change issue done at the federal and state level with regard to the forestry sector are given. Ineligibility of funding for forestry carbon projects under the current rules of the Clean Development Mechanism (CDM) is seen as a major constraint for the forestry sector to play an influential role in combating climate change. Non-CDM funding may provide a short-term solution to the already constricted financial situations in the forestry sector. Capacity building of the Sabah Forestry Department is seen as a viable opportunity to be taken up by this seminar