Climate change may manifest significantly in Himachal Pradesh, with the impacts likely to adversely affect large percentage of the population depending on natural resources. A large scale shifting of forest biomes is being indicated. Himachal has to think of enough mitigation to avoid the unmanageable and enough adaptation to manage the unavoidable. Market strategies need to be examined and preparations are required to handle various options that come up with the new thinking under reduced emissions due to avoided deforestation and degradation (REDD). The sustainable forest management route taken by Himachal Pradesh promises a way out.