Economic growth and urbanization and its corresponding changes in environment are the major affecting factors for land use change. Economic growth and urbanization are inextricably linked to each other. Urbanization is an inevitable part of development process and the rate of growth of urbanization is an important indicator of economic development. Developing economy attracts urbanization which requires more infrastructure development for the stable growth of economy and implements the pressure on land and forest cover area. The rise in the global temperature is caused by the accumulation of so called ‘Green House Gasses’ (GHG). The increase in global CO2 and its corresponding temperature on earth surface known as Global warming. It affects not only ecosystems by altering the composition of the vegetation as well as plant, animal diversity and human health, but also economies through a variety of channels, such as water resources, agriculture and energy. CO2 is responsible for 60% of the greenhouse effect and enhancing in global temperature. The present study is inclined towards the carbon sequestration calculation and land use changes in Madhya Pradesh.