Standing forests are the most important territorial reservoirs to CO2. Reforestry and afforestry CDM projects are the means to sequester carbon. Himachal Pradesh and Haryana are the examples.
Links:
[1] http://admin.indiaenvironmentportal.org.in/reports-documents/thats-your-sink
[2] http://admin.indiaenvironmentportal.org.in/category/publisher/centre-science-and-environment
[3] http://admin.indiaenvironmentportal.org.in/category/thesaurus/forests
[4] http://admin.indiaenvironmentportal.org.in/category/thesaurus/climate-change
[5] http://admin.indiaenvironmentportal.org.in/category/thesaurus/clean-development-mechanism-cdm
[6] http://admin.indiaenvironmentportal.org.in/category/thesaurus/certified-emission-reduction
[7] http://admin.indiaenvironmentportal.org.in/category/thesaurus/carbon-sinks
[8] http://admin.indiaenvironmentportal.org.in/category/thesaurus/carbon-sequestration
[9] http://admin.indiaenvironmentportal.org.in/category/thesaurus/haryana
[10] http://admin.indiaenvironmentportal.org.in/category/thesaurus/himachal-pradesh