Carbon-dioxide emissions due to deforestation and forest degradation are linked to increasing drought, destructive floods, and sea level rise. Activities to reduce such emissions therefore provide a compelling justification for their inclusion in international environmental policy. This research focuses on land change from forestry to large-scale plantations in Malaysia and Indonesia, mega-biodiversity hotspots of Southeast Asia. Impacts of plantation types on biodiversity and carbon flux are assessed as well as the role of large-scale agricultural plantations on rural livelihood and the global economy. Trade-offs in conservation and economic development priorities within the context of REDD is evaluated.