Foreseeing the importance of managing forests for climate change mitigation and sustainable development, the Royal Government of Cambodia has put strong commitment to managing its remaining forests under the new anticipated international climate change agreement on REDD+ mechanism. Forestry Administration in collaboration with Community Forestry International, and Terra Global Capital started a REDD project for Community Forestry sites in the northern province of Oddar Meanchey in 2007. Here, we report the methods and findings from our project and propose an appropriate framework for effective implementation in Cambodia. Ten drivers and six agents of deforestation and forest degradation were identified and each driver could be reduced by adopting appropriate project actions. Changes in deforestation, carbon stocks, and project emissions were estimated under baseline and project scenarios. Our results suggest that the project is likely to lead to the reduction of about 8.6 million tonne CO2 over 30-year project. Although policies and methods are available for implementing the project, sustained commitment and law enforcement play an increasingly important role in achieving real emission reduction and sustainable development.