Deforestation accounts for 35 per cent of carbon emissions in developing countries and 65 per cent in least developed countries. According to estimates of the Food and Agriculture Organization of the United Nations (FAO), on average, 13 million hectares of forest were lost each year between 2000 and 2005- Over the same period, 5-7 million hectares were added to forest area annually, resulting in a rate of net forest loss of 7.3 million hectares per year, a slowdown from the rate of deforestation experienced between 1990 and 2000. But unless the energy challenge is addressed, as we argue in this chapter, we will experience neither the required mitigation in developing countries nor the catchup growth needed to allow the transformative change in the economies of developing countries so crucial to their climate and development success.